Property Damage and Diminution in Value
Who We Are
Valuation Services Related to Impacts to Property Value
One of the common appraisal issues is whether there is a loss in market value caused by some factor. These factors can be various, including encumbrances, construction defect, right of way projects, and environmental issues, among others. Schneider Valuation Consultants, Inc. provides objective, litigation-focused appraisal services in matters involving property damage, value impairment, and overall value diminution issues.
Valuation is approached with close attention to the cause, relevant code and case law, and market data, considering the issues that may arise as a result of a dispute between parties.
Focus Area
Valuation assignments involving property damage or a reduction in value focus on whether certain factors have caused a measurable decline in market value. These situations frequently are considered in legal disputes between various parties (property owner and tenant, neighbors, and utility companies and property owners, among other relationships).
Diminution in Value
Determining whether a property has experienced a decline in value requires clear analysis of before-and-after or with-and-without conditions. Assignments may involve construction-related impacts, loss of visibility, restriction of access, or permanent physical alterations.
The key consideration is how market participants react to the impact, which is measured by appropriate evidence, including market data.
Each case is evaluated using relevant market evidence and appropriate valuation methodology that applies to the property type and the jurisdiction associated with the case. An analysis of site-specific issues is necessary to determine the impact, if any, on value.
Types of Damage Considered
Assignments may involve properties affected by vibration, settlement, structural issues, or adjacent construction activities. Others relate to altered access, view impacts, or encumbrances, whether physical or legal.
An appropriate analysis focuses on how these factors impact value.
SVC’s goal is to provide a supportable, independent valuation conclusion that reflects the available data and is relevant to the legal jurisdiction and appropriate codes of civil procedure and evidence codes.
Each appraisal is prepared in accordance with professional appraisal standards, applicable regulations, and relevant code and case law.
Who We Work With
Valuation services are provided to attorneys, insurers, property owners, and public entities involved in disputes over property damage and resulting loss in value.
Legal Counsel
Support is provided to law firms involved in claims regarding property damages or diminution in value claims. Work product is developed with consideration for relevant law and expert testimony.
Property Owners
Owners of affected properties engage SVC to understand whether, and to what extent, there is a damage that impacts market value. Appraisals are prepared for a variety of issues, particularly litigation support.
Public Entities
In matters involving public infrastructure or utilities, public entities may require a third-party analysis of damage-related value changes.
Other Experts
Often, the diminution in value is compared to the cost to cure a certain damage. SVC regularly works with other professionals to measure value impacts to property.
Valuation Considerations
Each assignment involving property damage or diminution in value requires issue-specific research and careful application of methodology.
Effective Valuation Date
Understanding market conditions as of the date of value is important as it relates to value. The valuation analysis considers are relevant market trends.
Highest and Best Use
In market value scenarios, clearly identifying and analyzing the highest and best use is paramount to a credible valuation. This not only includes an analysis based on the property in its impacted condition, but also as if the damage had not occurred.
Market-Based Evidence
Conclusions are credible when they are supported by relevant evidence and logic. A property analysis is based on relevant market data.
Intended Use
Reports are structured to serve the needs of the intended user, and SVC has experience is clearly explaining to a trier of fact how such impacts are measured.
Assignments involving property damage or a reduction in value are handled with an emphasis on independence, clarity, and supportable conclusions. The resulting work product is prepared to help users understand whether market value has been affected and, if so, to what extent.
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or call us at 858.208.3175.
