• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Trees Are Not Real Property- Right?

Status
Not open for further replies.

mb1243

Freshman Member
Gold Supporting Member
Joined
Oct 17, 2016
Professional Status
Certified General Appraiser
State
Texas
Say you are appraising a 1 acre lot with two 100 year old oak trees on it. You have comparable sales of two adjoining 1 acre lots and two lots across the street. All lots are similar in all respects except the trees. Lot A sold for $50,000 and is a flat, open lot with no trees. Lot B has two 100 year old Oak Trees and is sold for $60,000. The lot across the street (Lot C) also has two 100 year oak trees and sold for $60,000. The lot next to that one (Lot D) is an open lot with no trees that sold for $50,000.

What is the market value of the subject lot?
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Say you are appraising a 1 acre lot with two 100 year old oak trees on it. You have comparable sales of two adjoining 1 acre lots and two lots across the street. All lots are similar in all respects except the trees. Lot A sold for $50,000 and is a flat, open lot with no trees. Lot B has two 100 year old Oak Trees and is sold for $60,000. The lot across the street (Lot C) also has two 100 year oak trees and sold for $60,000. The lot next to that one (Lot D) is an open lot with no trees that sold for $50,000.

What is the market value of the subject lot?

Tree Lots:
B= $60k
C= $60k

Non-Tree Lots:
A = $50k
D= $50k


There is obviously a difference of $10k between the sets of lots.
Why isn't a natural tree (not agricultural production trees, aka emblements, like almond trees in an orchard) part of the real property?
 

Tom Woolford

Elite Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
The trees are a desirable feature just like waterfront or golf course. I Think the question is why wouldn't they have a contributory value, especially since you have already measured it?
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I think it is part of the Real Estate. It's permanently attached.
We have 2 that are downright huge. :peace:
 

Peter LeQuire

Elite Member
Joined
Jan 3, 2005
Professional Status
Retired Appraiser
State
Tennessee
Nothing to argue about in this particular problem, but some things to possibly think about in similar if different circumstances: do any trees impair the optimal house site (either in the property being appraised or in any comps?; are the trees healthy, or are they a possible fall hazard?).

Mature trees can contribute value for a lot of reasons, but I've seen sites on which mature, apparently diseased trees had to be removed (at considerable cost) because they posed a hazard to the improvement(s). I've seen sales of lots with mature trees from which the trees were immediately removed and sold (particularly those of interest to specialty hardwood peckerwood sawmills - walnut, red and white oak, ash, etc.), and to clear the best house site, and the cleared lots sold for as much and more than they did prior to removal of the trees.

A tree would be considered part of the real property as long as it's rooted and standing: when it falls over, it's probably no longer considered part of the real property.
 
Last edited:

Pittsburgh Pete

Elite Member
Joined
May 6, 2008
Professional Status
Certified General Appraiser
State
Pennsylvania
All trees are not created equal! Have seen very valuable trees in some eminent domain cases. Houses with a line of evergreens along the roadway serving as a buffer between the dwelling and a well-traveled roadway come to mind. These type of trees have substantially greater contributory value than most trees.
 

gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
All trees are not created equal! Have seen very valuable trees in some eminent domain cases. Houses with a line of evergreens along the roadway serving as a buffer between the dwelling and a well-traveled roadway come to mind. These type of trees have substantially greater contributory value than most trees.

Oh man, why are you giving Bobby Bucks an easy tree-hugger tag? :)
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
peckerwood sawmills
Is it coincidental that Pete posted within minutes of this post? It was practically a call for him. :- ) Another concern with those old trees is how quickly a bolt of lightning can turn a cottonwood into a pile of uncut firewood. I wonder if one could insure those trees for 10K with a reasonable premium, maybe JTip can give a quote? :)

Oh man, why are you giving Bobby Bucks an easy tree-hugger tag? :)
I'm hesitant to disagree with Pete regarding eminent domain, I'm told he's quite the guru in that category. :)
 

Amy Perkins

Senior Member
Joined
Jul 20, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
The trees are a desirable feature just like waterfront or golf course. I Think the question is why wouldn't they have a contributory value, especially since you have already measured it?

As long as they aren't blocking an ocean view and can't be cut down based on "heritage" tree status.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks