Most practitioners use The Appraisal of Real Estate (Appraisal Institute 2013a) in valuing real estate. In applying external obsolescence as a depreciation for real estate under the cost approach, court systems have found different interpretations of The Appraisal of Real Estate. Examples of these differences exist in Arizona, which requires a higher standard of proof, and Minnesota, which interprets The Appraisal of Real Estate to not require such an elevated level of proof. Minnesota adopted a just standard because it conforms with the proper interpretation of The Appraisal of Real Estate, the intent of the Appraisal Institute, the practice of experts, and general fairness.
Obsolescence; Depreciation; Legal research guide/aids
Wildes, M. J. (2018). Minnesota’s reject of heightened standard for external obsolescence is proper interpretation of The Appraisal of Real Estate. Journal of Property Tax Assessment & Administration, 15(1), 69-86. Retrieved from https://researchexchange.iaao.org/jptaa/vol15/iss1/4