Trees may contribute to a landscape value by performing certain functions;
- Engineering functions
Over the years through court decisions and research, consulting arborists now have several methods to employ in determining a trees value. The tree has increased in value 19 percent since 1971. Land values have gone up 27%. Property value increased 9% per tree since 1981. An average of 18-1/2% of a property’s value is realized through trees gracing the property (Kim Coder)
Trees as well can have a negative value if:
- Tree removal costs are greater than the tree value
- Potential liability hazards exist if a tree has structural and mechanical defects
- Property losses due to natural causes are not covered in most insurance policies.
- A decrease in property value can be considered if the loss is substantial. A written report report would be sent your accountant and then he would fill out the appropriate paperwork and send it along with your 1040 at the end of the year.
Tree Appraisal Calculation
Since August of 1992, tree appraisals must be done using the most current edition of the Guide for Plant Appraisal from the ISA. Trees are appraised by replacement value or trunk formula method.