Tree Valuation Arboriculture Spring 2001 J.G. Mexal.

Tree Valuation

Arboriculture

Spring 2001

J.G. Mexal

Arboriculture The Value of Trees /J. Geiger Jul-Aug’03

• 40 yr-old tree pays in benefits > $60/yr– Intercepts 2,143 gal stormwater ($23)– Removes 2.5 lbs pollutants ($13)– Reduces energy bills by 7% ($8)– Increases home value 1% ($15)– Maintenance costs ~ $8

• Small tree > $16• Large tree > $78

Arboriculture

Tree Valuation/Methods/ISA 2000

• Cost– based on replacement or repair costs

• Income– used only on income producing property

• Market– “real estate appraisal” approach

Arboriculture


• Factors in tree appraisal– species (qualitative)– condition (qualitative)– size (quantitative)– location (qualitative)

100% given for native species

Arboriculture


Rating Tree Species• Climate

– cold hardiness– drought tolerance– resistance to ice, wind

• Growth– tolerance to stress– vigor– structural strength– life expectancy– pruning requirements

• Soils– structure and texture

– drainage

– water stress

– flooding tolerance

– pH

– nutrition

• Problems– diseases

– insects

– air pollution

Arboriculture


Rating Tree Species

• Mulberry

• Eucalyptus

• Montezuma cypress

• Globe willow

• Afghan pine

• Ponderosa pine

• Piñon

• Arizona ash

• Pecan

• Palms

• Bolleana poplar

• Chinaberry

• Chinese pistache

• Chitalpa

• Desert willow

• Arizona sycamore

Arboriculture


FunctionCharacteristicsArchitectural Climate

Adaptationto Site

Plant Care

Mature size *** *** ** ***

Form ** ** *

Growth rate * * **

Branching ** * * **

Wood Strength ** * *

Rooting ** *** ** ***

Growth habits

Arboriculture



Adaptationto Site

Plant Care

Leaves ** *** ** ***

Thorns ** * **

Flowers * *

Fruit **

Bark *

Plant features

Arboriculture



Adaptationto Site

Plant Care

Temperature **** **Drought ** **Wind ** **Light * **Soil **** *** **Air ** *Pests *** ***Fire **** ** **

Environmental Tolerance

Arboriculture


• Condition Rating– structural integrity

• genetic predisposition

• roots

• shoots

– plant health• pesticides

• soils

Arboriculture


• Condition RatingFactor Structure Health Subtotal

Roots 1-4 1-4 2-8 Trunk 1-4 1-4 2-8 Scaffold Branches

1-4 1-4 2-8

Small Branches

1-4 1-4

Foliage/ Buds

1-4 1-4

Key1= no problems2=minor problems3=major problems4=extreme problems

Total = 8-32

(score32)x100

Arboriculture

Tree Valuation/Size/ISA 2000

DBH

Arboriculture

Tree Valuation/Trunk Area/ISA 2000

• Area = πr2 = πd2/4 = 0.785d2

• Adjusted Trunk Area = – used for large trees (> 30” DBH)– empirically determined (no real data)

– ATA = - 0.334d2 + 69.3d - 1087

Arboriculture

Tree Valuation/Estimating Size/ISA 2000

DBH = 0.82x + 0.48

R2 = 0.80

0

4

8

12

16

0 4 8 12 16

Stump Diameter (in)

DBH (in) Black oak (Q. velutina)

Arboriculture

Tree Valuation/Location/ISA 2000

Location Rating (0-100)

– Sum of Site, Contribution and Placement3– Site: Very High = 90-100%

High = 80-89%

Average = 70-79%

Low = 60-69%

Very Low = 10-59%

– Contribution– Placement

Arboriculture


• Accent structures (A)

• Aesthetic values (A)

• Vistas (A)

• Frames view (A)

• Defines space (A)

• Historic, rare or unusual (A)

• Erosion control (A,F)

• Screens view (A,F)

• Wildlife attraction (A,F)

• Cleanliness (A,F)

• Air purification (F)

• Allergenic (F)

• Pollution control (F)

• Noise attenuation (F)

• Light & glare shield (F)

• Safety barrier (F)

• Shade & cooling (F)

• Traffic control (F)

• Windbreak (F)

Contribution Rating Factors (0-100)

Arboriculture


Placement Rating (0-100)

• 1 specimen may have greater value than several in cluster

• one in a row of formal planting

• placed under utility lines

• back yard vs front yard

Arboriculture

Tree Valuation/Cost Approach

• Replacement Cost Method

• Trunk Formula

• Cost of Repair

• Cost of Cure

Arboriculture

Tree Valuation/Cost Approach

• Information needed:– cost of replacement tree

• largest available specimen

– cost of installation• planting, shipping, maintenance, profit

– appraisal of existing tree• species, size, condition, & location

Arboriculture

Replacement Cost Approach

Field Observations:

1. Species__________

2. Condition ________%

3. Trunk diameter ____cm or circumference____cm

4. Location % =[Site____% + Contribution ___% + Placement ___%] 3 = ___%

5. Removal & Cleanup costs _____

Arboriculture

Replacement Cost Approach/con’t

Appraisal Information:

6. Species rating __________%

7. Replacement plant size (Diameter) ___cm

8. Replacement plant cost $_____

9. Installation cost $_____

Arboriculture


Appraisal Calculations:

10. Installed plant cost (8+9) = $_____

11. Adjusted cost (10x6x2x4) = $_____

(cost x species x condition x location)

12. Removal & cleanup costs = $_____

13. Total appraised value (11+12) $_____

Arboriculture

Replacement Cost Approach-example

Field Observations:

1. Species__Chinese pistache

2. Condition __70____%

3. Trunk diameter _15_cm or circumference_47_cm

4. Location % =[Site_60_% + Contribution _75% + Placement _60%] 3 = _65%

5. Removal & Cleanup costs _120__

Arboriculture



6. Species rating ___80_____%

7. Replacement plant size (Diameter) _15cm

8. Replacement plant cost $_780__

9. Installation cost $_1900__

Arboriculture



10. Installed plant cost (8+9) = $_2680____

11. Adjusted cost (10x6x2x4) = $_976____

(cost x species x condition x location)

12. Removal & cleanup costs = $_120____

13. Total appraised value (11+12) $_1096__

Arboriculture

Trunk Formula Approach

Field Observations:1. Species__________

2. Condition ________%

3. Trunk diameter ____cm or circumference____cm

4. Location % =[Site____% + Contribution ___% + Placement ___%] 3 = ___%

Arboriculture

Trunk Formula Approach/con’t


5. Species rating __________%

6. Replacement plant size ___cm2

7. Replacement plant cost $_____

8. Installation cost $_____

9. Installed tree cost (7+8) $_____

10. Unit tree cost $_____/cm2

Arboriculture


y = -0.336x2 + 69.44x - 1090.3

R2 = 10

500

1000

1500

2000

2500

3000

3500

0 10 20 30 40 50 60 70

AreaATA

DBH (in)

Area (in2)

Arboriculture



11. Appraises trunk area (or ATA) ____ cm2

12. Appraises trunk increase (11-6)____ cm2

13. Basic tree cost ((12x10)+9)= $_____

14. Total appraised value (13x5x2x4) $_____

Arboriculture

Trunk Formula Approach example

Field Observations:1. Species_ Texas red oak

2. Condition __80____%

3. Trunk diameter _45_cm or circumference____cm

4. Location % =[Site_90_% + Contribution _80% + Placement _70%] 3 = _80__%

Arboriculture



5. Species rating __75______%

6. Replacement plant size _31 cm2

7. Replacement plant cost $_585_

8. Installation cost $_1200_

9. Installed tree cost (7+8) $_1785

10. Unit tree cost $_19__/cm2

Arboriculture


y = -0.336x2 + 69.44x - 1090.3

R2 = 10

500

1000

1500

2000

2500

3000

3500

0 10 20 30 40 50 60 70

AreaATA

DBH (in)

Area (in2)

Arboriculture



11. Appraised trunk area (or ATA) _1590 cm2

12. Appraised trunk increase (11-6)_1559 cm2

13. Basic tree cost ((12x10)+9)= $31,406

14. Total appraised value (13x5x2x4) $15,075

• Now, check this using English units, and find out what is wrong!!!

Arboriculture

Compound Cost Approach

Annual interest rates compounded:Years 5% 7% 9%

1 1.05 1.07 1.09

2 1.10 1.14 1.19

3 1.16 1.23 1.30

4 1.22 1.31 1.41

5 1.28 1.40 1.54

6 1.34 1.50 1.68

7 1.41 1.61 1.83

8 1.48 1.72 1.99

Arboriculture

Compound Cost Approach/con’t

1. Site clean up costs $_____

2. Plant cost ($ x condition x location x interest) $____

3. Installation ($ x interest) $____

4. Maintenance cost ($/yr x interest) $____– maintenance cost should decrease over time

– Year 1 = $80 x 1.22 = $ 97.60

– Year 2 = $60 x 1.15 = $ 69.00

– Year 3 = $60 x 1.10 = $ 66.00

– Year 4 = $40 x 1.05 = $ 42.00

Subtotal = $274.60

Arboriculture

Compound Cost Approach/ example

1. Site clean up costs $_ 50____

2. Plant cost ($ x condition x location x interest) $_178___

3. Installation ($ x interest) $_159__

4. Maintenance cost ($/yr x interest) $_275___– maintenance cost should decrease over time

– Year 1 = $80 x 1.22 = $ 97.60

– Year 2 = $60 x 1.15 = $ 69.00

– Year 3 = $60 x 1.10 = $ 66.00

– Year 4 = $40 x 1.05 = $ 42.00

Subtotal = $274.60

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Tree Valuation Arboriculture Spring 2001 J.G. Mexal.

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