History Of Real Estate Appraisals In The Us

[Sunny Taylor]

Looking for sources, preferably online, to research the history of real estate appraisals. Specifically, when was the first known recorded land appraisal in the United States? When were appraisals first required and how was this initiated and enforced? Any information regarding the history of appraisals would be appreciated, thank you!

 

[Austin]

The Appraisal Institute has good sources but you have to be a member or affiliate to access the resources. They had an excellent article in the April 2003 appraisal journal on the history of appraising focused on some of the most significant contributors. You can find their site below and I think you can go to the Lum Library and see the titles but not the articles. You can e-mail the library and you might can purchase the arcles.

http://www.appraisalinstitute.org/

 

[Terrel L. Shields]

I know from my own abstract that part of my property was appraised to settle an estate for an ancestor who was killed in the Civil War. They settled his estate about 1870. The courts named three men to value the place and report back to the judge.

Lloyds of London used appraisers to rank the quality of ships for underwriting purposes. A seaworthy craft was given a higher grade than a leaky worm-eaten boat. That was back as far as the 16-17th Century.

 

[Austin]

Years ago when I was taking capitalization theory classes from the AI an instructor told us that discounting originated in Europe in the middle ages to value the King's timber. They would estimate the value of the timber at maturity and to value the present value would discount from the present value based on maturity time, or so the story went.

If you are interested in archaic appraisal methods and how things were done in the 19th century you can contact a couple of forum members, Mike Garrett in particular. When Mike passes on we are going to send his body to a taxidermist and hang him on the wall of the appraiser’s museum. Steven Santora will do the eulogy and dedication. We are saving Steven's body for the cost approach exibit.

 

[Oregon Doug]

Sonny - The Appraisal Institute (formerly the American Institute of Real Estate Appraisers) was founded circa 1930 (before my time)and likely has the most pertinant historical data regarding Real Estate appraisal in the U.S. in its library. You may need the help of a local MAI or SRA to access it.

It's my understanding that property (all type) valuation for taxation purposes extends back to the nation's earliest days. It would be a very interesting research topic. It has to be related to the concept of private property ownership - a concept that didn't exist among the Native American cultures but it would have to have been included in early treaty negotiations, right?

Oregon Doug

 

[Fred]

Posted by Austin

discounting originated in Europe in the middle ages

Actually, there is a nice explanation of the present value of an annuity (that's like the present worth of future benefits, Austin) in the Old Testament and other, maybe even antediluvian, examples.

BTW, Austin holds the forum record for mangling more historical references than the rest of the forum combined. He thinks the Ellwood formula was the preferred drink of one of the Blues Brothers.
Austin has been explaining for years that certain appraisal numbers, like square-footage, are actually "pregnant" and recently his pet theory of covariant synergy has given birth to nine new approaches to value. I just hope he doesn't name any of them after me, but I will take a cigar. I deserve something, besides a migraine, not just for being this funny, but for probably being the only forumite who has read and who remembers all of Austins' posts. Actually, I think he peaked ca 1997 with a fine article on regression in REV Magazine, but he's been "regressing" ever since.

Sorry for the inside jokes, Sunny, please come back and let us know when you publish. It's the only way I can keep Austin from misquoting you, too.

 

[EDWARD BERRY]

Steve,

Not only do I read ALL of Austin's post but yours as well.

For the cost, (no pun intended)you cannot beat them.

I tried to find the OT c & v, my old brain cannot remember all the there begets and begats. There is quite a bit in OT about Real Estate matters.

It would be interesting to compile all of them. Nabob's vineyard taking would be a start.

Keep on trucking(posting), other than the Cost Appraoch you are OK.

Gratefully, ed.

 

[Indiana Jones]

If you are interested in archaic appraisal methods and how things were done in the 19th century you can contact a couple of forum members, Mike Garrett in particular. When Mike passes on we are going to send his body to a taxidermist and hang him on the wall of the appraiser’s museum. Steven Santora will do the eulogy and dedication. We are saving Steven's body for the cost approach exibit.

That's the funniest thing I've heard today! (Then again it's early.)

 

[Paul Ness MAI]

One thing you need to differentiate is economic and valuation principles from actual appraisal practice and use. I'm not sure of the breadth of your research. The underlying principles go waaaay back in history. From what little history I have learned, the "modern" appraisal profession came about in the 1930's in the aftermath of the Great Depression.

 

[Fred]

Ed writes,

Not only do I read ALL of Austin's post but yours as well.

Order that man a double Tylenol and water chaser.