Case Study in Real Estate Appraisal: Temecula Olive Oil Company

This paper introduces geographers to the field of commercial real estate appraisal using the case study of the Temecula Olive Oil Company site in Aguanga, California. The appraisal was prepared by the author while an employee of Tierra West Appraisal & Land Use Dynamics, Inc. in Hemet, California, for Citizens Business Bank for purposes of new loan financing. The 26-acre site consists of level-to-rolling topography, expansive views, a lake and campsite, 5 acres of olive and grape agriculture, a business office, barn, storage shed, winery and olive press, and proposed event room. The steps necessary to properly appraise the site include concepts and analyses familiar to geographers, such as research into appropriate market areas, map interpretation and land use, slope analysis, strengths-weaknesses-opportunities-threats (SWOT), and highest and best use. Real estate appraisal is a multidisciplinary field that incorporates aspects from geography, economics, finance, environmental planning, and law. Typical appraisal tools include aerial photos, topographic maps, as well as handheld computers, GIS, and GPS.

). This is a summary of an example of an actual appraisal, and so does not conform to the normal style and format of typical academic papers. Several terms that are routinely used in appraisals are used here, such as referring to the parcel under consideration as the subject property, and references to other works are lacking.