Brattle principal Michael Cragg recently co-authored an article, “Valuing Properties with Wetland Potential,” that discusses the impact of regulations that set mitigation banking as the preferred option for offsetting actions that adversely affect wetlands. The article was featured in the spring 2011 issue of The Appraisal Journal.
Dr. Cragg, along with co-authors Dr. Christine Polek and Dr. Stephen Polasky, expand on previous research detailing the unique challenges of wetland valuation. The authors propose two alternative valuation methodologies that address the complexities of valuating mitigation lands: one that focuses on the income-generating potential for property with wetland mitigation potential, and another that uses sales comparables. The authors agree that appraisers should consider the market elements of supply and demand in valuating land with wetland potential.