Author: Robin Enos

This article is the second on evaluating the worth of a tree on your property. In the first article we discussed an informal way of judging a tree’s worth. Here we look at more formal ways of valuating a tree.

Trees offers numerous benefits to the community. No question about it. But they also have a dollar value all their own. So, if you lose a tree on your property, you can sometimes recapture its monetary loss through an insurance claim or by taking a deduction on your federal income tax. The IRS defines a casualty loss as “… a loss resulting from an identifiable event of sudden, unexpected, or unusual nature.” Events under this definition include storms, floods, lightning, vandalism, and air and soil pollution. 

Before filing an insurance claim or taking a deduction, however, you need to determine the value of the tree. You can do that yourself, which can be a challenge. Or, you can contact a qualified arborist to help you appraise the tree. He or she can help you determine the tree’s value for insurance losses, tax deductions, estate assessments, and tort claims. The appraisal also is handy if questions arise about the value of a tree on your property.

What is an Appraisal?

An appraisal is an objective, unbiased estimate of trees (or any other type of plant) on your property. In that case, you may need to litigate the dispute in a court or by arbitration, which would be based on an unbiased and honest appraisal of the plant’s value by professionals. The best time to get an appraisal is before the tree is damaged or destroyed. But many appraisals occur after a tree is damaged, removed, or destroyed from a person’s property.

If you evaluate a tree after the loss, the appraiser must gather critical information about the tree. The information may include previous site records, tree assessments, site reviews, and witnesses to the tree’s condition. The appraiser may also conduct a comparative sampling on a local basis. A critical step in determining valuation is the tree’s depreciation factors, including the tree’s condition, functional limitations, and external limitations.

The tree’s condition refers to its overall health. Functional limitations include tree placement, site conditions, the proximity of power lines, and any genetic issues. External limitations include issues outside the owner’s control that can affect the tree’s structure, form, and sustainability, such as water availability, threats from pests, ordinances, and rights of way. Having determined the tree’s pre-damage condition, the appraiser then determines the evaluation for your tree.

Methods for Evaluating Trees

Three methods exist for evaluating trees—the Cost Approach, Income Approach, and Sales Comparison approach. You can find a good description of each method in Guide for Plant Appraisal, the 10^th edition of which is now available. The publication is endorsed by significant arboriculture and horticultural groups. It’s a good resource for valuating trees.

The Cost Approach focuses on the plant, location, and species as depreciation factors. While the Income Approach uses the value of produce to assign value to a tree. The Sales Comparison Approach to valuing a tree considers the increase or decrease to your property by the plants’ presence. Each evaluation method has its pros and cons. The Tree Council can help you choose the correct method for you, given these pros and cons.

But evaluating a tree or trees on your property can be a challenge. It’s a complex undertaking, which is why it’s better left to a professional. Take the Cost approach, for example. Four methods exist for this approach—the Replacement Cost method, Trunk Formula method, Cost of Repair method, and Cost of Cure method. A popular technique within this Cost Approach Method is the Trunk Formula Technique (TFT), which uses the unit tree cost formula to determine value.

You can obtain the tree unit costs from local resources—either a consulting arborist or the Regional Plant Appraisal Committee (RPAC), which includes industry experts associated with the local chapter of the International Society of Arboriculture. The RPAC determines unit costs for commonly available trees in your area, the tree’s obtainability, and their functional limitations in your area.

Hiring a Professional Makes Sense

Determining the value of a tree on your property is critical. To do it properly, however, requires training, expertise, and experience. So, evaluating the tree yourself may not be in your best interest. Ideally, you should hire a qualified professional to do the job. He or she will assign a value to your tree and then defend, explain, and support the results if there’s a dispute.

Buying a tree for your property shouldn’t be taken lightly. Trees provide numerous benefits to homeowners and communities, including functional, aesthetic, social, and environmental contributions. They also provide economic value to your home and property that you can express in dollars and sense. The value of a tree in economic terms, however, can be more than you think. So, make sure you consult a tree professional when buying a tree for your home or property. Doing so will pay off in the long run.

Are you confused about buying the right tree for your property? Then contact RI Tree at (401) 764-5885. We’ll help you choose a tree that makes sense for you and your property.

By: John Campanini, RITree Technical Director

This blog post is the first of two on the valuation of trees. It discusses how homeowners can evaluate the worth of a tree on their property. The second blog post will discuss more formal tree appraisal methods.

How much is that tree on your property worth? If you’re like many homeowners, that thought seldom crosses your mind. That’s no surprise. Homeowners tend to buy trees based mostly on aesthetics or what they think will look good in their yards. While aesthetics is a great reason for buying a tree, it’s not the only one.

You also need to look at the economic benefits trees bring to the table. Trees boost the economic value of one’s property and home more than you may realize. Truth is, the right tree planted in your yard makes a difference to your home and property—a big difference. Often, that difference goes well beyond your initial cost for the tree.

So how much is a tree on your property worth?

Research by the Arbor Day Foundation shows that planting a good-sized tree increases property values anywhere from 3% to 15%. The Council of Tree Landscape Appraisers, on the other hand, says a sound mature tree can add $1000 to $10,000 to the value of your home. Put simply, when it comes to selling a house, trees improve curb appeal.

What’s more, a good shade tree can save you money by cooling off your house. Some experts say it can reduce your home cooling bill by 50%. In the winter, the right tree (Evergreens) can block the wind, cutting heating costs from 20% to 50%. Suffice it to say, then, that trees boost the value of a home and property—a consideration you should keep firmly in mind when buying a tree.

Determining the Value of Trees

RITree’s recent inventory of forests in six Rhode Island urban communities—Cranston, Johnston, North Providence, Warren, Warwick, and Woonsocket—found that an average tree provides over $108 in annual value, including:

• $42 in energy savings
• $40 in aesthetic value
• $11 storm water control

That’s a great return on your investment from a single tree over a single year. Over ten years the return adds up considerably. It compares favorably to the return provided by planting a public tree. A public tree in its 20th year after planting, provides $96 in benefits and only costs $36 for an annual net benefit of $60.

And let’s not forget the economic benefits trees bring to the community. Research by the Tree Council, for example, shows that collectively, the six Rhode Island communities mentioned above provide about $32.5 million annually in environmental services, including savings, carbon storage, and storm water controls thanks to the trees on their land.

Put simply, trees increase the value of your land and a healthy return on your money when planted on your property. If you want to calculate the economic benefit provided by s single tree in any landscape, go to the MyTree website at: https://mytree.itreetools.org.

Seven Trees that Add Value to Your Property

The key to generating a great return on your property is finding the right tree for your yard. Matching the right tree to the right property benefits both the tree and the property. With all the different species available, however, choosing the right tree for your yard can be confusing.

Ideally, you want to select a tree that grows to a known width and height. That way, you can match the tree to the space available. Plus, some trees, add more economic value to your home and property than others.

Maples, oaks, lindens, and tulip trees are good choices for local homeowners from an economic standpoint. So are magnolias, ornamental cherry, and citrus trees. Deciduous trees are great for suburban gardens. They let light in autumn and winter.

While these trees add value to your property, not all of them are well suited for every site. Some considerations when selecting a tree for your property in addition to the value they provide and their economic benefit include:

• Tree form and size
• Tree placement
• Growing conditions
• Soil conditions
• Clearance for sidewalks
• Clearance for driveways
• Function of the tree
• Exposure to sun and wind

These are critical factors you need to take into consideration when buying a tree for your property. That’s why it helps to consult someone knowledgeable about trees when buying a tree for your yard.

Buying a tree for your property is a serious decision. So, do your homework when it comes to purchasing a tree or trees to plant in your yard. Research the tree’s pros and cons and then consider the factors mentioned above. Doing that will help you choose the perfect tree for your property—one that not only beautifies your land but also boosts its value.

If you’re still confused about buying the right tree for your property, contact RI Tree at (401) 764-5885. We’ll help you choose a tree that makes sense for you and your property.