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Is My Drywall Chinese? - HB Litigation Conferences

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Use of Mass Appraisal Models<br />

Cross-sectional studies:<br />

Most commonly used is the hedonic pricing<br />

model<br />

Conceptually analogous to single appraisals<br />

Uses a large g data set to formulate valuation<br />

coefficients (called “adjustments” in a single<br />

appraisal)<br />

In Summary<br />

Homes impacted by <strong>Chinese</strong> drywall may have value<br />

impacts both from remediation costs as well as from<br />

residual stigma<br />

Stigma may be reduced by remediation, but probably<br />

does not dissipate<br />

Losses resulting from <strong>Chinese</strong> drywall can be easily<br />

separated from recession impacts<br />

Mass appraisal can be applied to efficiently and<br />

systematically measure financial impacts<br />

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