Chapter 2: Operating Procedures

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Section 1: Introduction

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Overview

This chapter covers the operational procedures in determining what type of appraisal is needed and appraiser qualifications.

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Type of Appraisals

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  • Acquisition related:
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    • Appraisals: initial appraisals, second or additional appraisals, update appraisals, second or additional update appraisals, date of take appraisals, second or additional date of take appraisals, preparation & testimony appraisals
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    • Review Appraisals: initial appraisals, second or additional appraisals, update appraisals, second or additional update appraisals, date of take appraisals, second or additional date of take appraisals, preparation & testimony appraisals
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  • Appraisal Consulting, a variety of services: acquisition related services, preparing right of way acquisition estimates for new projects, appraisals for design purposes
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  • Real Property Disposition Appraisals: initial appraisals, second or additional appraisals, update appraisals, second or additional update appraisals, date of take appraisals, second or additional date of take appraisals, preparation & testimony appraisals
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Number of Appraisals

Within the process of assigning and contracting with fee appraisers to appraise parcels on acquisition projects, R/W-PD shall obtain the initial appraisal report by assigning a work authorization to a TxDOT contract fee appraiser. If it is determined that controversial or complex appraisal issues exist, a second appraiser work authorization can be assigned and a second appraisal completed.

Likewise, a third or additional appraisal report can be obtained when two appraisals obtained on a parcel reflect honest differences in opinion that prevent TxDOT ROW from conscientiously recommending a value for approval. R/W-PD may want to consult with ROW Division HQ in deciding to obtain a third or additional appraisal; however, approval for a third or additional appraisal from the ROW Acquisition Section Director or designee is not required as long as the need for the additional appraisal is justified.

NOTE: An update by the original appraiser on a parcel in eminent domain will be paid based on the appraiser's PREAS contract fee schedule. The time required to complete an update appraisal report may be less than the time required to complete the initial report; therefore, the appraisal fee for an update report is frequently lower than the fee charged for the initial appraisal report.

All approved values for parcels must be established by one of the following four methods:

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  • Real Estate Appraisal Report, form ROW-A-5, used for improved and comprehensive parcels.
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  • Real Estate Appraisal Report, form ROW-A-6, used primarily to value vacant land when minor improvements are valued on a depreciated cost basis, and with minor cost to cure items, such as re-fencing the remainder, and for simple land acquisitions and site improvements.
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  • Real Estate Value Finding Report, form ROW-A-7, used when the compensation centers on land value, and the expected acquisition is $25,000.00 or less, or when there are minor cost to cure items.
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  • Memorandum of Value Determination, form ROW-A-8, used when a total compensation does not exceed $10,000.00.
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  • NOTE: Only qualified TxDOT ROW personnel may use forms ROW-A-7 or ROW-A-8, which are classified as waiver valuations. A waiver valuation is not an appraisal and is not subject to an appraisal review; moreover, the waiver valuation is not subject to the Uniform Standards of Professional Appraisal Practice.

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Market Data Files

Although not required, R/W-PD may find it helpful to develop data files of all recent real property sales in or near the subject project before pre-appraisal contact or appraising begins. Such files need not be elaborate but should indicate the location and date of sale so during appraisal review it may be determined that the appraiser considered adequate sales. In addition, accumulate information regarding building costs, fencing costs, etc. for the area of each project under development.

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