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August 10, 2023

Property in the Course of Development

Since the urban real property market is very dynamic, one finds many properties in the process of being developed or renovated on condemnation. Frequently an owner will be just about to begin efforts to build or in the process of same when a condemnor swoops in to take the parcel. The law is clear that property taken whilst in the process of development, the owner is entitled to recover for the added value of the owner’s efforts.  We call this “entrepreneurial profit.” As New York’s Appellate Division, Second Department stated… read more

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Posted in Condemnation, Development, Entrepreneurial, Profit, Valuation
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March 16, 2023

Racial Bias in Valuation of Residential Homes

We previously wrote an article in the New York Law Journal, “Diversity is Needed to End Racial Bias in Home Appraisals,” NYLJ December 27, 2022. We stated, the answer to appraisal bias on racial grounds is to expand opportunities for Black real estate professionals.  In a statement issued on September 20, 2020, the Appraisal Institute, the largest professional association of real estate appraisers reiterated its efforts to expand opportunities for aspiring appraisers to help combat bias in valuation. Less than 2 percent of appraisers identify as Black.  The appraisal industry… read more

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Posted in Racial Bias, Valuation
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December 8, 2022

Time to Correct Racial Bias in Residential Valuation. Here is The Way to Start.

My December 27, 2022 article for the New York Law Journal discusses the widespread racial bias found in residential appraisals.  Racial bias in home valuation operates as an institutionalized theft of value from the Black community.  Most Americans measure their wealth by calculating their net worth.  The largest component of personal wealth is the ownership of one’s home.  If a racial component is not given a fair valuation of their property, they lose the opportunity to increase their personal wealth, or at least have a fair accounting of same. The… read more

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Posted in Appraisers, Racial Bias, Valuation
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June 9, 2022

Condemnation Award of $669,00 Made for Staten Island Wetlands

The Appellate Division, Second Department affirmed an award of $669,00 made by Justice Wayne P. Saitta.  Matter of City of New York, New Creek Bluebelt (Galarza). This condemnation case involved the taking of a vacant 21,000 square foot lot in Staten Island which was designated 100% wetlands. The former property owner Ivan Galarza retained Goldstein, Rikon, Rikon & Levi, P.C.  The Manhattan law firm was founded in 1923 and limits its practice to eminent domain – condemnation matters. Wetland cases present difficult legal and valuation issues. As Justice Saitta wrote:… read more

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Posted in Increment, Valuation, Wetlands
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March 23, 2021

Valuing Real Estate During a Pandemic

The Granular Approach Covid-19 has significantly impacted real estate valuations.  For example, under the comparable sales approach to valuation, valuators look at sales prices of similar properties in recent transactions, making adjustments for differences between those properties and the subject property.  As stated by Lisa Loychik of Cohen & Co. in a paper dated August 20, 2020, “It’s debatable whether pre-Covid-19 sales can be considered comparable with post-pandemic sales, though.  Valuators are looking beyond comparable sales and considering individual circumstances on a more granular level.  This approach acknowledges that generalities… read more

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Posted in Comparable Sales, Covid-19, Valuation
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