Tree Tech Consulting    The Knothole  Hop To Forum Categories  The CTLA Guide    Pages 28 and 57 What is UNREASONABLE RISK question mark

Closed Topic Closed
Go
New
Find
Notify
Tools
Pages 28 and 57 What is UNREASONABLE RISK question mark
 Login/Join 
<Scott Cullen>
posted
The discussion of Condition of page 28 is introduced with an emphasized caution that trees "posing UNREASONABLE RISKS should NOT be appraised for amenity monetary value."

The discussion of Cost Approach on page 57 provides similar caution, but goes on to suggest that "if the perceived risk could be mitigated the Cost of Repair Method could be used."

There are a number of issues here.

Unreasonable Risk is not defined. Is an unreasonable risk one which cannot be mitigated? Would a reasonable risk need mitigation? Who decides what is reasonable?

While the text suggests that a separate Hazard Assessment "may be required" can any determination of a risk that might reach the level of "unreasonable" (whatever that might be) be made without one? Does that mean every appriaser must be competent to perform hazard assessment or must take on the responsibilty and liability to perform one regardless of the definition of the assignment or limitation in its scope?

If the determination of "reasonableness" properly is the client's it may be that both appraisal and risk assessment may be required.

The appriaser must recognize three separate characteristics: 1) the physical situation (risk of failure and whether it can be mitigated, 2) the "reasonableness" of risk that the client is willing to accept and 3) the monetary value to the client before and after mitigation.

These three characteristics may interact as complex variables. With regard to #3 it may be necessary to perform both risk assessment and appraisal for the client to make a decison. Cost of Repair may be a subsidiary decison tool... is it worth it to the client. (That was discussed recently in another thread on Future Cost of Removal).

On the other hand the appraiser might provide "what if" values in the absence of risk assessment, perhaps to help[ the client decide if the cost of risk assessment is worth it.

The points here IMO are 1) that the hard and fast rule suggested on page 28 seems unsupportable, 2) that in fact the relationship of risk, value and resonablenes is variable and that the proces of appraisal and/or risk assessment may also be variable and 3) that the processes may be iterative or conditional, not either-or.
 
Report This Post
  Powered by Social Strata  

Closed Topic Closed

Tree Tech Consulting    The Knothole  Hop To Forum Categories  The CTLA Guide    Pages 28 and 57 What is UNREASONABLE RISK question mark

© 1997-2003 Tree Tech Consulting. All messages are the property of the original author.