Valuation without Value Theory: A North American “Appraisal”

Abstract

Executive Summary: Competence supposes a professional foundation that includes a solid understanding of theory and its historical development. In real estate appraisal, for example, this theory is that of economic value, and its history spans from Xenophon to Ricardo and from Marx to Hobson. This literature review shows that the core of real estate appraisal literature has little place for this theoretical foundation, and allocates even fewer pages to the history of economic value. Appraisers face the challenge of erecting the edifice of basic concepts, laws and principles in appraisal so that the field can advance from art to science, and from trade to profession.