Ideally, an accurate appraisal value would reflect the application of depreciation factors. Professional appraisers make use of depreciation in their valuation process to justify differences in a new tree compared to the appraised tree. This would then account for substandard tree characteristics, placement in the landscape, or the site it occupies. The depreciation factors include:
- Actual condition of the tree
- Functional limitations
- External limitations.
1. Actual condition of the tree
In tree valuation, “condition” refers to the assessment of the overall tree health. Professional Appraisers would ideally assess a tree’s vigor, looking for the presence of pest issues and/or any stress symptoms. They would also consider the tree’s structure and form while still evaluating branch habits to determine if there is a strong, stable structure with good branch attachments and spacing and if the tree has a good form for its species.
2. Functional limitations
This is primarily associated with the tree itself or the site on which it’s located. These may limit the future growth, development, and overall health of the tree/plant. Site conditions and placement, e.g. proximity to utility lines, could limit full development. Professional Appraisers would ideally investigate any genetic limitations related to the genus and species itself. As naturally poor branch systems, susceptibility to pests, or invasive tendencies can depreciate a tree’s value.
3. External limitations
External limitations in this case includes issues outside the control of the tree’s owner that may affect sustainability, structure health, or tree form. Environmental circumstances such as availability of water, issues with threats from pests, or utility vegetation management concerns. Local ordinances, easements, or rights of ways may also be factors that affect life expectancy of plants in general.
In the application of depreciation factors toward the overall basic cost, a Professional Appraiser would ideally assign a rating to each of these three depreciation categories namely; the condition of the tree, functional limitations, and external limitations. We offer a lot of different services from emergency tree removal all the way to palm tree trimming, we ensure our clients get all their needs met at affordable prices.