Longhofer article wins Richard U. Ratcliff Award

Stanley D. Longhofer, PhD, is the winner of the 2021 Richard U. Ratcliff award for his article, "Land Values and External Obsolescence," published in the Spring 2021 issue of The Appraisal Journal.

The Richard U. Ratcliff Award is presented annual for the best original article published in The Appraisal Journal written by an academic author. Articles are judged on the basis of pertinent appraisal interest, provocation of thought, logical analysis, perceptive reasoning, clarity of presentation, and overall contribution to the literature of valuation.

Congratulations Stan!

Land Values and External Obsolescensce

Abstract: External obsolescence is perhaps one of the most challenging aspects of implementing the cost approach in appraisal. Loss due to external obsolescence is driven by factors outside the property, and it can be difficult to distinguish between external obsolescence of the improvements and a reduction in value of the land. In other words, external obsolescence is prone to double counting. The purpose of this article is to provide guidance as to when such value loss is attributable to the land and when it is attributable to the structure. The discussion demonstrates that external obsolescence can only arise when the existing structure is not the site's highest and best use. As a result, external factors that affect the property's value are attributable to the land if the current use is the property's highest and best use and are attributable to external obsolescence of the building otherwise.