PWSD (Public Water Sewer District) Appraisal

[gbailey1107]

I have been asked to appraise a PWSD in Missouri. Has anyone ever had to value one of these? I really have no idea where to start. The client is asking for a nothing to in-depth. I have been provided with the last three years of financials and they are looking for an income approach only. I have been a Certified General Appraiser for over 20 years and have never come across something like this. Any ideas?

Thanks!

 

[Gobears81]

What is the intended use?

 

[Terrel L. Shields]

Well...the income approach is likely the way to go but exactly how...I'm not sure. Is it even a RE appraisal rather a business appraisal

 

[Red Flint]

Respirator during the site visit.

 

[sputnam]

I have been asked to appraise a PWSD in Missouri. Has anyone ever had to value one of these? I really have no idea where to start. The client is asking for a nothing to in-depth. I have been provided with the last three years of financials and they are looking for an income approach only. I have been a Certified General Appraiser for over 20 years and have never come across something like this. Any ideas?

Thanks!

The income, expense, and cap rate information is probably out there somewhere. I have no idea where. Maybe some water/sewer trade organization?

 

[bsilver]

I worked with another appraiser for the valuation of a water system. This was 25 or 40 years ago now, but I think there was a private water system owned by a large mobile home park that a town wanted to purchase so they could use the infrastructure to extend beyond the park to other properties.

This was in New England and I recall we had sale data from five or six states in NE as well as upstate NY. There was a lot of data out there. It shouldn't be too hard to find some. Be geographically and time expansive if you need. These are the type of property that community money is put up to spend, so there is often news articles about them that you can dig up on the internet. We did all three approaches. My only word of wisdom is that the income approach really requires some cap rate data, as they can be all over the place. Customer density differentials with the same income can really skew out if your data doesn't pick up the added long term costs, and this characteristic shows up in data.