US Real Estate Advisors, Inc. (USREA) specializes and has provided hundreds of comprehensive real estate Easement Valuation appraisal reports. These valuation estimates have involved and determined the “before and after value” for both residential and commercial properties. The difference between the before and after values is the Diminution In Value (DIV) estimate.
According to the Dictionary of Real Estate Appraisal, an easement is the “conveyance of certain property rights, but not ownership, to a parcel of real estate.” An easement can be temporary or it can be permanent depending on the type of easement.
They are three types of easements:
Subsurface easements may be required during construction to lay down water and sewer pipes, or communication wires. Overhead easements may be needed for transmission lines or aviation requirements. Surface easements can be the most disruptive and may be created for flood control, highway requirements or access to other parcels of land.
The task of the appraiser is to value the “rights conveyed” by the creation of the easement and to value them correctly. The value of the easement will be based on the difference between the value of the whole property before (or without) the easement and the value of the property after (or with) the easement in place. The difference in value before the easement and after the easement is known as the Diminution in Value (DIV).
When investigating an easement, it is important that the appraiser understand the nature of both the legal and physical rights that are being sought. The appraiser needs to have a detailed understanding of the nature of the easement in order to calculate the correct DIV.
When performing an easement valuation appraisal report it is important to ask oneself some important questions:
Experience is often the most important factor in selecting an appraiser to perform an Easement Valuation. US Real Estate Advisors focuses on Easement Appraisals and the expertise and experience to correctly value the DIV for easement valuations.
The benefits to using USREA to complete your easement appraisals are as follows:
In addition to the above we also do appraisals on complex assignments for all property types.