Section 2: Form ROW-A-6, Real Estate Appraisal ReportAnchor: #i1003644
Form ROW-A-6 Real Estate Appraisal Report consists of five pages. This form is useful in the following situations:
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- when improvements are not substantially impacted by the acquisition in a manner other than the minor replacement or reestablishment of items measurable by cost to cure; Anchor: #PVSIKVGR
- for residential properties; Anchor: #VVOEAMSN
- when value is based on market data comparable sales only; Anchor: #EKHRBCRK
- for rural properties where damages are limited; and Anchor: #WTKKBCTI
- in instances where arbitrary values are used to value improvements, e.g., assessed values.
Form ROW-A-6 Real Estate Appraisal Report may be inadequate for commercial properties, partial acquisitions where remainder enhancements may offset damages, or where the acquisition has substantial impact on the value of the remainder. In such cases, form ROW-A-5 Real Estate Appraisal Report should be used.Anchor: #i1003684
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- Page 1 - This page identifies the parcel and classifies it as a whole or partial acquisition. The Federal-Aid Project Number is required on this page, when it is applicable. It should follow the Right of Way CSJ (RCSJ). The “Purpose of the Appraisal” is stated, “Market Value” is defined, and the “Certificate of Appraiser”, including the appraiser’s estimate of value as of a specific date, are shown on Page 1. It also includes the dates the subject and the comparables were inspected.
It is the appraiser’s obligation to provide the property owner or their representative the opportunity to accompany the appraiser during the property inspection. The individual who accompanies the appraiser must be identified.
A new page 1 of this form must be submitted to ROW PD when a report is revised, supplemented or the date of valuation changes. Data must be provided when the revision affects the final estimate of value. A transmittal letter must accompany the submission in all cases.
The appraiser’s name should appear in print followed by their certification number. The appraiser is required to sign and date the appraisal report. The review appraiser is required to sign the report.
Compliance with USPAP requirements should follow page 1. If it is appropriate and the appraiser feels it is necessary to invoke a jurisdictional exception, specific comments and discussion should be developed on an attached page 1.1.
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- Page 2 - Photographs of Subject Property- In the case of vacant land, one or two photographs will be sufficient; however, on improved properties, a photograph identifying each significant improvement is required. It is essential that a photograph, clearly depicting each improvement within the area to be acquired, be featured in the report and specifically identified. Each photograph of an improvement should provide support of the appraiser’s assessment of the improvement’s condition. This page may be repeated to accommodate additional photographs. These additional pages will be numbered sequentially (i.e., 2.1, 2.2, etc.). Anchor: #HEEECOVV
- Page 3 - Area or Neighborhood Analysis, Site Analysis, Highest and Best Use Analysis & Land Valuation - At the top of this page, the appraiser should provide a short summary of the area or neighborhood. The site analysis should include a five-year sales history if the project is one where there is federal aid in the acquisition of right of way or construction. A copy of the parcel plat and property description are to be attached. This section of the report should also include the subject’s legal description and description of the improvements on the parcel. The appraiser’s statement as to which improvements, if any, have been declared as personal property should be noted in this section ( see Chapter 3, Section 2, Legal Instructions – Personalty and Realty).
If the parcel being appraised is a partial acquisition, a complete discussion of the part to be acquired should also be attached. A summary of the subject’s highest and best use is also required.
Since the basis of this report is the market data approach, it is important that the appraiser complete the adjustment grid provided in the form in accurate detail and furnish adequate comparable sales data on form ROW-A-5S Comparable Data Supplement and a comparable sales map.
The adjustment grid can be used for vacant land or improved sales. Cost estimate sources should be identified for the valuation of improvements.
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- Page 4 - Explanation of Adjustments with Reconciliation - This is a page designed to report and summarize the sales comparison approach for land and improved properties. It allows the appraiser to identify, outline, and discuss (reconcile) the adjustments to the remainder comparables. Anchor: #BKCVCLYM
- Page 5 - Estimated Value of Acquisition - This page is a summary of compensation due the property owner as a result of the state’s acquisition, including land value, improvements, and cost to cure. An explanation supporting the cost to cure value should be presented at the bottom of this page. The total compensation shown on this page is the same as the compensation figure reflected on Page 1. The bottom of this page may be used for additional documentation.