This article reviews the basic underpinnings of real estate valuation and appraisal methods as they are applied in mass tort. It then summarizes the appraisal perspective on six categories of questions addressed in recent, successful class certifications:
- Do individual property idiosyncrasies cause mass appraisal methods to violate Daubert?
- Can the mass appraisal model be reasonably specified prior to certification of the class?
- Does the mass appraisal model provide efficiency gains (superiority) over individual appraisals of damaged properties?
- Can mass appraisal models differentiate from among multiple sources of value impact?
- Can a single model account for multiple property types within an affected area?
- How can a mass appraisal model function in a market which is not at equilibrium?
Author: John A. Kilpatrick