The Use of Geographic Information Systems in Real Estate Appraisal
Abstract
Appraisers need to show the reasoning behind their value opinions by discussing important spatial relationships and their likely effect on value. Geographic information systems (GIS) can be used to analyze these relationships and to show why a client should select an appraiser who has this level of information.
Gilbert Castle has noted that real estate is essentially a game of information arbitrage. The likely winner of the game is the person that takes advantage of computerized analyses. Castle explains that GIS is an attention-getting way of showing what you know.(n1) Of course, larger data sets are used for GIS analysis, not just the minimum "three comps."
The visual aids that GIS can generate could also be very useful in litigation, to help explain complex issues to a jury that is relatively unfamiliar with real estate valuation. Clear communication of complex technical issues is the basis of forensic consulting, an emerging field that is expected to grow more rapidly in the future. The need for forensic consulting has been created by rapid changes in technology.
The Arden-Guthrie Problem
Arden-Guthrie is a neighborhood in San Bernardino, California. A number of fraudulent transactions in that neighborhood inflated the ostensible value of local quadruple properties. The question is, How could a reviewer have used GIS to find the problems caused by the fraudulent sales?
Many of the properties in question are located within the block group outlined in red in Figure 1. Other problem properties are located in a block group just south of the outlined area. The larger red area at the top of the map is part of a color-coding system that shows median rents by census block groups. As we can see, renters in this area one-half mile to the north were paying from $913 to $1,001 per month at the time of the 1990 census. This represents the highest rent category for San Bernardino County.
Rental data from the 2000 census will be available soon. A reviewer could print out such a map and use it to check quickly for inconsistencies. One obvious inconsistency would be an appraisal that concludes that rents in the highest bracket are indicated for a property that is located in a low-rent area. Census data is relatively inexpensive. Data for the entire country was ava...
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5. Frank F. DeGiovanni in Gentrification, Displacement and Neighborhood Revitalization, SUNY series on urban public policy, Albany State University of New York Press, c1984
6. Emily DeNitto, A Neighborhood Grows in Brooklyn, Crain’s New York Business, January 1, 2001
7. Margaret E. Dewar, Why State and Local Economic Development Programs Cause so Little Development, in Economic Development Quarterly, Vol. 12 No. 1, Sage Publication, February 1998
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Lance Freeman tackles the issue of gentrification from the perspectives of residents in the gentrified neighborhood. He criticizes the literature for overlooking the experiences of the victims of gentrification. The author argues that people’s conceptions on the issue are somewhat misinformed in that most people consider it as completely deplorable, whereas in reality, it benefits the community by promoting businesses, different types of stores, and cleaner streets. These benefits are even acknowledged by many residents in the gentrified neighborhood. However, the author admits that gentrification indeed does harm. Although gentrification does not equate to displacement per se, it serves to benefit primarily homeowners and harm the poor. Additionally,
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The All-American Professional Girls Baseball League was the first, and only, female baseball league in history. This league was developed during World War II when “ in the interests of patriotism, women were encouraged to do all the things normally reserved for men” (Johnson XIX). At the time the book, When Women Played Hardball, was written in 1994, no other professional sports team had lasted as long as this baseball league. The league lasted a solid nine years. These women did not just play baseball, they broke records. “ Kurys, the "Flint Flash", stole 201 bases [in a season]. Her career tally of 1114 stolen bases is a professional baseball record...She [Joanne Weaver] is tied for the fourth best batting average in the history of professional baseball, and she's the last player in the history of the game to bat over .400” (XXII/XXIII Johnson). Today, these women still hold records in major league baseball. At the peak of the league in 1948, the league “ consisted of 10 teams that entertained nearly 1,000,000 fans in middle sized Midwestern cities” (XXI Johnson). Every team attracted loyal and enthusiastic fans. At first, crowds came to the game to see the unusual sight of women playing baseball, but soon kept coming back because of the level of play and because they enjoyed watching the game. Every woman in that league just
U.S. cities experienced rapid growth and change, and also faced new challenges following the end of World War II. The consolidation of ghettos in the inner city and the rise of suburbs are two of the characteristics and problems that consequently arose for U.S. cities. One of the biggest projects created as a solution was the public housing project. These public houses however, although in paper they seemed like a great idea, in practice they actually proved not be such a great project because they brought several tensions and problems to cities and neighborhoods.
The women’s baseball league, also known as the All-American Professional Baseball League (AAGPBL), was created by Chicago Cubs team owner, Phillip K. Wrigley. As the league went through its years, only lasting from 1943 until 1954, it went through different ownerships besides Wrigley, such as Arthur Meyerhoff. During the final couple years of the league’s existence, they were individually owned. This league took place around World War II, and with these women playing baseball, it kept the public eye’s attention in order while the majority of men were away fighting. However, even before this league came about, something else stirred up decades after the Civil War happened. This professional league did more than just give women baseball; it helped
Gentrification also typically entails providing services (e.g., good-quality schools) and jobs in these neighborhoods. No family needs to be forced out but encouraged to seek a better life not only for them but their children. As much as many families will love to move from their neighborhoods to seek better life in another area, due to lack of money, many choose to stay and endure. An alternative strategy talked about in the paper is to move non-poor families into poor neighborhoods to change the mix and reduce poverty concentration and
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In May 1932, Fanny noticed that there was no actual league for softball, unlike her male counterparts. So she helped to create the Provincial Women’s Softball Union of Québec, she served as the president. This league is a huge deal, currently many softball players in Quebec and Ontario alike have played under them, either on a team or a tournament. This league was revolutionary at its time, it allowed many girls from all over Quebec to finally participate in softball. The PWSUQ was one way Fanny established herself in the community of sport. Another way was her journalism career for the globe and mail through her column “Sports Reel” she was able to defend women’s sports. It wasn’t uncommon for male writers to write in and express negative opinions of women in sport. Fanny was witty and always had something to say back to them. As insignificant this may seem it was actually a very important event. Through her column Bobbie was able to change the perspectives of many men and women alike of women in
Gentrification is the keystone for the progression of the basic standards of living in urban environments. A prerequisite for the advancement of urban areas is an improvement of housing, dining, and general social services. One of the most revered and illustrious examples of gentrification in an urban setting is New York City. New York City’s gentrification projects are seen as a model for gentrification for not only America, but also the rest of the world. Gentrification in an urban setting is much more complex and has deeper ramifications than seen at face value. With changes in housing, modifications to the quality of life in the surrounding area must be considered as well. Constant lifestyle changes in a community can push out life-time
Furthermore, he attempts to dispel the negative aspects of gentrification by pointing out how some of them are nonexistent. To accomplish this, Turman exemplifies how gentrification could positively impact neighborhoods like Third Ward (a ‘dangerous’ neighborhood in Houston, Texas). Throughout the article, Turman provides copious examples of how gentrification can positively change urban communities, expressing that “gentrification can produce desirable effects upon a community such as a reduced crime rate, investment in the infrastructure of an area and increased economic activity in neighborhoods which gentrify”. Furthermore, he opportunistically uses the Third Ward as an example, which he describes as “the 15th most dangerous neighborhood in the country” and “synonymous with crime”, as an example of an area that could “need the change that gentrification provides”.
In addition, to athletes like Babe Didrikson Zaharias, the All-American Professional Girls Baseball League was game changing to female sports. The All-American Professional Girls Baseball League was the first, and only, female baseball league in history. This league was developed during World War II when “ in the interests of patriotism, women were encouraged to do all the things normally reserved for men” (Johnson XIX). At the time the book, When Women Played Hardball, was written in 1994, no other professional sports team had lasted as long as this baseball league. The league lasted a solid nine years. These women did not just play baseball, they broke records. “ Kurys, the "Flint Flash", stole 201 bases [in a season]. Her
Zukin, Sharon. "Gentrification: Culture and Capital in the Urban Core." Annual Review of Sociology 13(1987): 129-147.
Wilson, W.J. 1991. "Studying inner-city social dislocations: The challenge of public agenda research." American Sociological Review 56:1-14.
GIS is an emerging method of data storage and interpretation. GIS is, simply put a database. It is many tables of data organized by one common denominator, location. The data in a GIS system is organized spatially, or by its physical location on the base map. The information that is stored in the database is the location and attributes that exist in that base map, such as streets, highways, water lines, sewers, manholes, properties, and buildings, etc. each of these items don’t just exist in the database, the attributes associated with the item is also stored. A good example of this would be a specific sewer line, from and arbitrary point A to a point B. Ideally, the sewer line would be represented graphically, with a line connecting the two points or something of the like. When one retrieves the information for that line in particular, the attribute data would be shown. This data would include the size of pipe, the pipe material, the upper invert elevation, the downstream invert elevation, the date installed, and any problem history associated with that line. This is the very gist of what a GIS system is.