HO-201
Landscape Tree Appraisal
HOME YARD & GARDEN • DEPARTMENT OF HORTICULTURE
PURDUE UNIVERSITY COOPERATIVE EXTENSION SERVICE • WEST LAFAYETTE, IN
Michael N. Dana, Philip L. Carpenter, Horticulture; and Paul C. Pecknold, Botany and Plant Pathology

Appraising the Monetary Value of Landscape Plants
Landscape plants serve functional and esthetic roles in rural, urban, commercial, or residential landscapes. Such plants have market value, much like real estate, but that value is often difficult to determine. In the case of loss of landscape plants, however, it may be necessary to establish a monetary value to validate an insurance claim or to justify a loss to the Internal Revenue Service.
Appraisal of landscape plants is not a precise process. Often, the opinion of an expert plants-man or consulting arborist is required, especially in the case of claims which are decided through litigation. However, homeowners can get some idea of the value of their landscape plants by following the procedures outlined in this bulletin. In some cases, a value determined by the homeowner may be sufficient to settle a claim, or to satisfy the IRS.
Three different methods are used by professionals to arrive at a value for landscape plants. Select the simplest method which is appropriate to the size and number of landscape plants for which a value is required.

Decrease in Assessed Value of Real Estate
When many plants are affected on a piece of property, or when a dominant landscape element is lost, then the change in assessed valuation may be the best indicator of value. Ask a realtor or land appraiser to assess the property with and without the plant or plants affected. A good, recent photograph of the landscape is valuable in establishing the property status before the loss.

Replacement Cost
Small trees or shrubs that are easily transplanted at their full size can be appraised by determining the cost of replacement. A local
nurseryman can quote replacement costs, which should include removal of the dead or damaged plant, installation, post-transplanting care, and a survival guarantee. If the plant was in poor condition prior to the loss, the appraised value may be less than the full cost of replacement.

Formula Computation
The formula method is in widespread use for large, individual trees which exceed the size usually transplanted. The guidelines for this method are distributed by the Council of Tree & Landscape Appraisers and are accepted by professional societies of nurserymen, landscape contractors, and consulting arborists.
The formula is based on an arbitrary monetary value for tree size. This value is subject to economic conditions and is periodically revised. The basic value is then adjusted for tree species, plant condition, and landscape, location. Consequently, there is considerable latitude for the application of professional judgement in determination of the adjustment factors. The formula is as follows: Tree Value =

Cross section area x Base value x Species class x Condition class x Location class

Cross-Section Area
Cross-Section Area is used to express tree size. It is the cross-sectional area of the tree trunk measured about one foot (30 cm) above ground level for trees with trunk size up to 12 inches (30 cm) in diameter, or at about 4 1/2 feet (140 cm) above ground level for trees with greater than 12 inch (30 cm) trunk diameter. Cross-section area can be calculated from trunk diameter by using the formula diameter2 x 0.7854. It can be computed in either square inches or square centimeters. Cross-section areas for trunk diameters ranging from 2 inches to 40 inches and 5 cm to 100 cm are listed in Table 1.