“Appraising Railroad Corridors: Misconceptions about Across-the-Fence Methodology”

Shenehon is pleased to announce that the International Right of Way Association (IRWA) published “Appraising Railroad Corridors: Misconceptions about Across-the-Fence Methodology” by John T. Schmick in its March/April issue. The IRWA Magazine is a national publication providing news and information for real estate professionals.

In his article, John discusses how the across-the-fence (ATF) methodology has been transformed from a textbook definition to an applied definition with regard to valuing railroad corridor land. In the process, many appraisers no longer understand when the ATF methodology is applicable or how to apply it correctly. As a result, appraisers commonly produce a valuation based on an assumed minimum valuation (AMV) which is not the same as market value. The article presents two cases studies based on actual transactions where the ATF methodology was misapplied. These are real world situations where the sale price was based on a faulty premise. In each case, hundreds of thousands of dollars changed hands based on a flawed analysis when the AMV model was erroneously substituted for the ATF appraisal model.