Section 4: Form ROW-A-7, Real Estate Value Finding ReportAnchor: #i1004563
On parcels having a value of $25,000 or less, Form ROW-A-7, Real Estate Value Finding Report, rather than a formal appraisal report will be acceptable, provided the compensation does not include damages to the remaining property other than for items measurable by cost to cure. Should there be any damages that cannot be simply documented as cost to cure, a form ROW-A-6, Real Estate Appraisal Report, rather than a form ROW-A-7, will be necessary.
The valuation process of using ROW-A-7 form is defined as a non-appraisal valuation. The property owner must be informed this method of valuation is not a formal appraisal and does not produce an appraisal report.
The Appraisal form ROW-A-7 is an appraisal waiver and not an appraisal as defined by Uniform Act and, therefore, is not required to comply with appraisal standards and requirements regardless of their source (49 CFR 24.102(c)(2)). A staff appraiser, not certified by TALCB usually completes this form. In the event the staff appraiser is unable to complete the Real Estate Value Finding Report, it is permissible that a R/W-PD staff representative, knowledgeable of the parcel's area and familiar with land values complete the memorandum. Appraisal waiver forms are not designed for use by state certified appraisers.
If the use of the Real Estate Value Finding Report is being considered to value a parcel and if the parcel to be acquired is known to be more than $10,000 in value, the owner must also approve of its use instead of an appraisal report. It is recommended that the use of this valuation process be considered and discussed during the pre-appraisal contact with the owner.
CAVEAT: Property Code Section 21.0113(b)(4) requires that, as part of the making of a bona fide offer to the property owner, a condemning authority must "before making a final offer, the entity obtains a written appraisal from a certified appraiser of the value of the property being acquired and the damages, if any, to any of the property owner's remaining property". Since the ROW-A-7 form is not an appraisal, is to be prepared by a non-certified appraiser, and assumes no remainder damages other than possible cost to cure damages, it must not be used as the basis of any final offer.Anchor: #i1004585
- Anchor: #BLATRFCV
- 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; it should follow the Right of Way Account Number (RCSJ). In addition, on the first page, market value is defined and the purpose of the appraisal is stated. The “Certificate of Appraiser” includes the appraiser’s estimate of value as of a date, and the dates which the subject and comparables were inspected. When a report is revised or supplemented and the final estimate of value is affected or changes the date of valuation, a new Page 1 of this form must be submitted to R/W-PD. Anchor: #BKCARITB
- Page 2 - Pertinent Photographs of the Subject & Estimated Value of Acquisition - At the top of this page, one photograph will be sufficient and should provide support for the appraiser’s conclusion of value. Anchor: #LOUFVHBN
- At the bottom of the page, the table shows the value of the part to be acquired, the contributory value of any improvements located within the area to be acquired, and a summary of any cost to cure. The resulting value is the estimated total compensation. If needed, the staff appraiser can attach additional information. The plat map and field notes should also be included in this report.
Form ROW-A-7 provides for adequate analysis of the information considered in making the “Value Finding,” including reference to comparable sales and circumstances. Comparable sales data are available to the staff appraiser through previously approved project appraisals and other public sources of information. Form ROW-A-5S should be attached for each comparable used to achieve the value conclusion. Additionally, form ROW-A-7 should include at least a minimum description of the site and improvements to be acquired, along with field notes and plat map. If minor improvements are located within the area to be acquired, cost estimate sources should be identified.
Upon completion of the form ROW-A-7, a staff review appraiser will conduct an administrative review of the ROW-A-7, and prepare the Tabulation of Values (ROW-A-10) in the normal manner. If the staff appraiser preparing the form ROW-A-7 is located in a district which does not employ a staff review appraiser, the form ROW-A-7 can be reviewed by either a R/W-PD review appraiser or neighboring district review appraiser.