The effect of local and federal government website use on trust in government: an exploratory analysis

The objective of this paper is a closer examination of how information and communication technology (ICT) may influence consumer/citizen attitudes toward local and federal governments. This is accomplished through an exploratory analysis of how demographic variables affect local and federal government website use and their effect on trust in these levels of government. […]

Determinants of Students’ Relative Time Allocation Decisions

This study examines the relationship between various student characteristics and student’s time use. In particular, we use ordered probit models to estimate relative time use (work time vs. studying; work time vs. time in extracurricular activities; studying vs. time in extracurricular activities) using data from undergraduate students at a […]

Animal Operations and Residential Property Values

Animal feeding and processing operations have grown more concentrated, with each facility handling much larger numbers of animals than traditional farms. The larger concentration of animals impacts the quality of surrounding air and water. In addition, the facilities impact the economic conditions of the communities where they are located. All of these factors can potentially affect the value of nearby houses. This article summarizes the current literature on how animal […]

Land Use Policy Prescriptions for Local Government Using Spatially Oriented Data

This paper presents a model of land prices for the Valdosta-Lowndes County Industrial Authority, with the goal to recommend the parcels it should purchase to meet 2030 industrial employment projections. This model is coupled with a separate multi-criteria analysis by the South Georgia Regional Development Center that uses geographic information system data, […]

Do Survey Results Systematically Differ From Hedonic Regression Results? Evidence From a Residential Property Meta-Analysis

In this paper, we evaluate the effect of environmental contamination situations on residential property values. Using the meta-analysis technique, conclusions are drawn about the effect of location, type of study conducted, empirical technique used, and economic conditions on various outcomes. Using observations extracted from 40 peer-reviewed articles, meta-regression analysis […]

Using a Finite Mixture Model of Heterogeneous Households to Delineate Housing Submarkets

We use a finite mixture model to identify latent submarkets from household demographics that estimates a separate hedonic regression equation for each submarket. The method is a relatively robust empirical tool to extract submarkets from demographic information with far less effort than suspected. This method draws from latent class […]

Unconventional Shale Gas Development and Real Estate Valuation Issues

This article provides an overview of the real estate valuation issues related to unconventional shale gas activities, particularly those related to hydraulic fracturing or “fracking.” With the research on this topic in its infancy, we focus more on the valuation issues that can arise as opposed to those that […]

Contaminated Properties, Trespass, and Underground Rents

Purpose – This paper seeks to extend the literature on property damage assessment by incorporating the right of exclusion as a compensable component to damages. The paper aims to go on to illustrate methodologies to estimate as a rent this damage component.Design/methodology/approach – The authors develop a conceptual framework from which […]

Assessing the Technical Efficiency of Public High Schools in the State of Georgia

This study analyzes public high school efficiency, defined as the maximum level of educational attainment obtained with a given level of school inputs, in the State of Georgia. Using data envelopment analysis (DEA), urban and rural public high school efficiency differences are evaluated using a two-step estimation process. First, […]

An Iterative Approach to Minimizing Valuation Errors Using an Automated Comparable Sales Model

This paper describes a method for automating sales comparison valuations by choosing a small sample of comparable sales from a submarket of similar properties and adjusting their prices based on differences between sale and subject property characteristics. This logic is similar to that used in a traditional sales comparison […]

Contingent Valuation and Real Estate Damage Estimation

Real estate appraisal practice stresses three traditional approaches (cost, sales comparison, and income) to value contaminated properties. This paper discusses a fourth approach: the contingent valuation method (CVM). This method is useful in the estimation of losses for contaminated properties when market data are not available or market failure […]

Expert Systems and Mass Appraisal

Purpose – The purpose of this paper is to examine the usefulness of a heuristic expert system, to show its applicability to real-world valuation problems, and to suggest several avenues for statistical testing. Design/methodology/approach – The expert systems follow a traditional sales adjustment grid format, with sufficient data for non-parametric testing. Findings – The […]

Using Contingent Valuation to Measure Property Value Impacts

Purpose – The purpose of this paper is to measure the impact of a proposed biomass facility on prospective property values using the contingent valuation method. Design/methodology/approach – The paper uses a web-based survey approach to measure respondents’ reactions to two scenarios: one that describes the study area currently and another that […]

Conservative Dichotomous Choice Responses in the Active Policy Setting: the Case of University Parking

This study presents evidence of strategic behavior in faculty/staff members’ reports of willingness-to-pay at a public university. The results suggest that (1) students have a higher mean willingness-to-pay than faculty/staff and that (2) faculty/staff reject clear gains because they expect a revision to the parking permit fee structure in […]

Using Quantile Regression in Hedonic Analysis to Reveal Submarket Competition

In this paper, we use quantile regression analysis to explore the role submarket competition plays in setting housing prices in those price ranges where different submarkets occupy homes of similar price. We find evidence of direct competition between submarkets with different preferences for at least some homes in a […]

Inconsistency in Welfare Inferences from Distance Variables in Hedonic Regressions

In hedonic analysis, a common approach for eliciting information regarding the welfare significance of some landmark or (dis)amenity is to control for its distance from each observation. Unfortunately, the effects of distances to amenities on housing prices are generally not consistent indicators of the true price impact of that […]

Building a Sense of Home in Rented Spaces

Purpose – Much of the research into the development of home within the business literature has looked at home as a setting or a construct instead of as a process. Additionally, extant research has explored the process of homebuilding within the context of homeownership, often defining home in terms of […]

Using County Typologies to Inform Job Tax Credit Policy in Georgia

Some problems with the Georgia job tax credit program have been outlined as have some potential remedies. In this paper, we analyze Georgia’s job tax credit policy through a county typology lens. County typologies are created using factor analysis of the most recently available demographic, socioeconomic, amenity, industrial, and […]

Preservation Easements

Preservation easements should play an important role in managing real estate holdings by creating a family legacy, generating substantial tax advantages, and facilitating other real estate investments. Unfortunately, portfolio and family office advisors are often unaware of these opportunities. After first describing the two main easement categories—cultural heritage preservation […]

The Impact of Transit Corridors on Residential Property Values

Most of the literature on transit corridors, such as superhighways and tunnels, focuses on the positive externality of transit access (e.g., interstate access, transit station) and fails to isolate the negative externality of the corridor itself. This empirical study examines two situations: one with both access benefits and negatives, […]

Real Estate Investments of the Rich and Famous

Real estate research pays little attention to the investment priorities of the top tier of portfolios, sometimes called the “super rich” or the “super wealthy,” yet a relatively small number of such portfolios control nearly $100 trillion in investments. It comes as no surprise, therefore, that these investors show […]

Conservative Dichotomous Choice Responses in the Active Policy Setting: DC Rejections Below WTP

An important feature of a Contingent Value (CV) study is that researchers design a survey that guides respondents to answer dichotomous choice (DC) questions as if they represent once-and-for-all choices. Researchers frequently construct hypothetical markets to satisfy this condition; yet detractors assert that ‘hypotheticality’ leads inevitably to inflated DC […]

The Aftermath of Katrina: Recommendations for Real Estate Research

This paper provides an overview of government and independent research conducted in the wake of Hurricane Katrina in an effort to highlight additional areas in need of study. In addition to the overview of natural disasters and their impact on the United States, the aftermath of the San Francisco […]

An Alternative Spatial Hedonic Estimation Approach

Housing studies typically use parcel level distance variables or some variant of the spatial weights matrix approach to incorporate spatial effects into hedonic regression models. In this paper, using very detailed data on household attitudes and parcel attributes, hedonic regression residuals are used in a structural equations framework to […]

Application of Repeat Sales Analysis to Determine the Impact of a Contamination Event

Prior studies of environmental contamination examine the cross-sectional impacts, either through a sales-comparison-type model or hedonic pricing. Neither model is robust at analyzing the impact of an event, such as a contamination announcement. Longer term longitudinal studies may not control for exogenous impacts, such as changes in house quality. […]

Household Diversity and Market Segmentation within a Single Neighborhood

Housing hedonic studies typically assume that individuals or households are similar enough to aggregate into a single demand equation for analysis, usually relying on ordinary least squares (OLS) or some other single-line equation estimator. Diversity itself is managed by non-spherical disturbance corrections, typically spatial autocorrelation or heteroskedasticity in the […]

The U.S. Valuation Reconciliation Is Still Ongoing

Progress is slow in reconciling the Americas’ differing valuation standards: the Uniform Standards of Professional Appraisal Practice (USPAP) and the International Valuation Standards (IVS).
Author: John A. Kilpatrick
Originally published in Modus (Americas Edition), Vol. 1, No. 2 (2012)
Click here to download the full article.

Appraising Real Estate in Complex Environmental Class Actions: An Expert’s View

Class actions dealing with real property contamination often require some method of valuing the properties. Individual appraisals on those properties are not required; mass appraisal methods meet both the Frye and Daubert tests and can be superior to individual methods in class actions or mass torts. Professional appraisal standards […]

Real Estate Issues in Class Certification

Class actions dealing with real estate matters often require some method of valuing the properties in question. Individual appraisals on those properties are not required, according to John A. Kilpatrick, Ph.D., an expert in real estate appraisal and analysis. Kilpatrick says that professional appraisal standards provide standard rules for […]

Windfall Lien Guidance

In 2003, Congress passed the Small Business Liability Relief and Brownfields Revitalization Act, Public Law 107-118 (Brownfield Amendments), to promote the redevelopment and beneficial reuse of brownfield sites in the U.S. Congress provided for liability protection for bona fide prospective purchasers, but provided that these properties may be subject […]

Looking Backward and Forward: Economic Restructuring and United States Real Estate Markets

Two interconnected trends with far-reaching implications for the real estate industry have evolved in the United States over the last 50 years. First, the nation has steadily moved away from its traditional manufacturing base to become more specialized in services and information-producing industries, creating a demand for new kinds […]

Appraisal of Contaminated Real Estate in the United States

In the United States, contaminated property may be appraised for several reasons other than traditional property tax assessment: litigation (both tort and criminal), brownfield redevelopment, preservation/conservation easements, or financing. The Uniform Standards of Professional Appraisal Practice, adopted for use throughout the United States, outline the minimum standards in a […]

The Future of Real Estate Information

With the Internet quickly becoming the de facto source-of-choice for real estate information, it is imperative that real estate data conform to a uniform set of accepted standards. The Real Estate Information Standards, or REIS, established the basic framework for this in 1993. In 2001, the Data Consortium Namespace, […]

Valuation Implications of EIFS

John A. Kilpatrick is an analyst with Mundy & Associates, a Seattle-based firm of economic, market, and valuation analysts. The firm performs valuation services for litigators in various areas of law. This commentary is an excerpt of a presentation Kilpatrick made at Mealey’s Construction Defects Conference in December 2000 […]

Factors Influencing CBD Land Prices

In rapidly moving but thinly traded real estate markets, attempts at valuation using traditional or ‘first generation’ approaches can be problematic. Fortunately, other valuation models are available. This manuscript demonstrates the use of an economic model, including unemployment rates and vacancy rates, to value downtown land over time.
Authors: Bill […]

Summation of Evidentiary Rules for Real Estate Experts Mandated by Daubert v. Merrell Dow Pharmaceuticals, Inc.

Real estate professionals who are prospective expert witnesses face a new set of rules in gaining admissibility of their evidence and opinion into court. For many years, the credentials of the real estate expert were the primary criterion to qualification as an expert, and a single testimony often “validated” […]

The Brownfield Challenge

Most appraisers can agree on four key points about valuing brownfields:

Contamination poses an issue that must be considered in the appraisal process.
Proximate contamination significantly impairs property values.
Multiple impairment mechanisms are at work, including actual cost-to-cure, increased ongoing maintenance costs, and stigma.
The valuation process is complex, often requiring advanced valuation approaches […]