Comments on "You Can't Get the Value Right if You Get the Rights Wrong" (Letters to the Editor‪)‬

I read with much interest David Lennhoff's article in The Appraisal Journal, "You Can't Get the Value Right If You Get the Rights Wrong" (Winter 2009), as well as the letters to the editor and author's responses published in the Summer 2009 issue. Many interesting and important issues were raised and debated. As usual, the appraisal process begins with the appraisal problem. If the assignment is for condemnation or real estate taxes, then fee simple value will likely be involved. Most assessment jurisdictions and condemnation proceedings require a determination of fee simple market value, which often invokes a jurisdictional exception when appraising a leased property. How do you handle a leased property under that jurisdictional requirement? Must you, as the article suggests, "suspend reality" by ignoring the lease to appraise the fee simple? Mr. Lennhoff advises that this approach is permitted under USPAP Frequently Asked Questions (FAQ) No. 159, which appears to be the case. In addition, jurisdictional exception permits fee simple value if required by statute or the courts. In my opinion, appraising fee simple for taxes or condemnation fall under jurisdictional exception, not hypothetical condition. Therefore, there is no need to suspend reality; for a discussion on this see Mark Pomykacz, "Relationships between the Overall Property and Its Parts, and the Three Approaches to Value," The Appraisal Journal (Winter 2009): 69.