Tree Appraisal
What’s the True Value of My Residential Tree?
After working for decades as a tree consultant and appraiser, Marty Shaw is sure of one thing: Most homeowners have no idea how much the trees on their property are worth.
“When I tell a homeowner that their 20-inch elm is worth $30,000, they are usually surprised,” Shaw says. Large, stately oaks can be worth far more — the most expensive single residential tree Shaw has ever appraised was valued at $130,000.
The owner of Green Season Consulting, Shaw describes his work as “Tree CSI.” He was the first Middle Tennessee member of the American Society of Consulting Arborists, and he’s one of only a handful of full-time tree consultants in the U.S. He serves as an expert witness in litigation involving trees, from wrongful death cases to utility easement disputes.
Here in Nashville, Shaw notes that legal disputes over trees have increased in recent years as development has expanded. These disputes often require that values be determined for trees that are damaged or destroyed.
Most homeowners aren’t aware how much the mature trees on their property are actually worth.
“We have a lot of trespass cases in Nashville, where a developer or builder crosses the boundary or damages boundary trees,” Shaw says. Boundary trees, which grow on or near a property line, actually have greater legal protections than wholly owned trees. “You and your neighbor are married to that tree, and you can’t do anything to that tree,” he explains. When a builder’s actions kill or wound a boundary tree, the adjoining homeowner may have a cause for legal action.
Marty Shaw
Factors in Tree Value
That’s where Shaw’s expertise in appraising a tree’s value comes in. While some homeowners think a tree is worth only what it can produce in timber or wood fiber, the formula for calculating the value of a residential “amenity tree” is more complex. Shaw uses a cost analysis approach, comparing a tree’s species, size and condition to a hypothetical replacement tree. The first step is to measure across the trunk of the tree at a standard height and calculate the area of the trunk at that diameter, typically 4.5 feet above the ground. “We then take the largest commercially available tree for sale at a nursery and figure out what it will cost to buy, transport and plant that tree into the landscape,” he explains. The appraiser calculates the unit cost of the nursery tree and applies it to the size of the larger, existing tree to get its value.
Depreciation is another consideration in valuation — the species, condition and placement of a residential tree can raise or lower its value. In the Southeast, the White Oak is considered a near “perfect” tree and has the highest species rating – Class 1 or 100 percent. The lowest rated species (Class 5 or 20 percent) include the Silver Maple, Boxelder and Black Locust. The condition of the tree takes into account its general health, as evidenced by signs on its bark, branches, foliage and roots, and its structural integrity. Placement considers a tree’s location in the landscape – is it growing in an open area or too close to a structure or utility lines?
After all these factors are weighed and tabulated, a plant appraiser comes up with an overall value for a tree. In addition to the trespass cases noted above, Shaw says there are several other situations in which a homeowner might need an expert appraisal of a tree’s value:
Herbicide use and water issues. If a nonselective herbicide is used on a property near yours and the runoff damages your trees, you might be able to pursue a legal claim for which a tree appraisal is needed. A similar situation can arise when nearby development causes water runoff that floods your land and damages your trees.
Homeowner’s insurance. Many homeowners are surprised to learn that their landscaping and trees are not covered by insurance. Typically, a homeowner’s policy covers up to $500 per tree — and that amount will only be allocated to remove a fallen tree from a house. In many cases, a homeowner can add a rider to their policy to cover trees, however, and the insurance company may require an appraisal for any large trees to be covered.
Condemnation. When a city or state widens a road, homeowners are due compensation for land taken, including lost trees and landscaping.
Taxes. Shaw recalls a recent case in which a fire destroyed not only a home but many trees surrounding it. “We were able to calculate a value for the trees so [the homeowner] could take a tax loss” on the trees as well as the home.
Shaw says he’s puzzled by the fact that many developers in Nashville choose to remove valuable large trees from lots where they’re building houses. “Some developers are very good, and then there are others who give no thought to trees whatsoever. Large, mature trees should be elements that you really go out of your way to preserve,” he says. “With just a little effort and perseverance, you could reap the benefits of having a big, historic tree.”
According to Shaw, who lives in Franklin and works across the state and the region, Nashville is “much further behind” both Knoxville and Memphis in tree protection ordinances. He welcomes efforts by the Nashville Tree Conservation Corps and others to strengthen tree laws in the city.
When he meets with homeowners, Shaw finds that many of his clients have difficulty describing why they treasure their trees. That’s one reason he wrote a book on the subject, The Professional The Professional Amenity Plant Appraisal Handbook Plant Appraisal Handbook. “It’s a great resource if you want to be able to explain and articulate what the benefits of trees are,” Shaw says. The 252-page hardcover also offers in-depth coverage of appraisal methods and techniques for trees and landscape plants.
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