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Re: E-M:/ Dow downplays appraiser's dioxin comment



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Enviro-Mich message from Smileysmlc@aol.com
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The full story is at:

http://www.ourmidland.com/site/news.cfm?newsid=12699343&BRD=2289&PAG=461&dept_
id=472542&rfi=6&xb=jazez

Here is a snippet:
Dow downplays appraiser's dioxin comment 
    "Dow-hired Chicago-based appraiser Richard J. Roddewig found that of 53 
homes sold since February 2002 -- when the Michigan Department of Environmental 
Quality first cautioned residents about the presence of dioxin within the 
flood plain -- many have sold at or above asking price. 

    Sales studied in a portion of the flood plain near Shields Elementary 
School showed nine homes selling at 83 to 90 percent of the asking price, 29 at 
90 to 99 percent of the asking price and 15 at or above the asking price. "
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

    What homes sell for in relation to the asking price is interesting, but 
if the asking prices are less than they would be without the contamination, 
then the survey results are essentially meaningless.  They would really need to 
compare sales prices for comparable properties with dioxin contamination, to 
those without contamination.  

However, that is much more difficult to do, so that is probably why they just 
looked at asking prices.  But, under Dow's survey, if a property would 
normally be worth $150,000, but it was listed and sold for $100,000, they would show 
that as "proof" that the values aren't being affected since it sold for the 
asking price.  That is simply not a valid comparison.

Jack Smiley
(Michigan Real Estate Broker)



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