Chapter 2: Operating ProceduresAnchor: #BGBGIICC
Section 1: IntroductionAnchor: #i1028884
This chapter covers the operational procedures in determining what type of appraisal is needed and appraiser qualifications.Anchor: #i1028926
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 Anchor: #LKRVNWOP
- 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
- Appraisal Consulting, a variety of services: acquisition related services, preparing right of way acquisition estimates for new projects, appraisals for design purposes Anchor: #AXFSQBWC
- Real Property Disposition Appraisals: initial appraisals, second or additional appraisals, update appraisals, second or additional update appraisals
Number of Appraisals
Within the process of assigning and contracting with fee appraisers to appraise parcels on acquisition projects, ROW PD shall obtain the initial appraisal report by assigning a work authorization to a Department Certified Appraiser. If it is determined that controversial or complex appraisal issues exist, or if the parcel value is in excess on $1 million dollars, 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. ROW PD may want to consult with the ROW Program Office in deciding to obtain a third or additional appraisal.
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 five methods:
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- Form ROW-A-5 Real Estate Appraisal Report, used for improved and comprehensive parcels. Anchor: #HYHOEYIF
- Form ROW-A-5-OAS Real Estate Appraisal Report - OAS, used for improved and comprehensive parcels with Outdoor Advertising Signs (OAS) affected by the acquisition. Anchor: #XFEGCXHQ
- Form ROW-A-6 Real Estate Appraisal Report, 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. Anchor: #WTQNORCC
- Form ROW-A-7 Real Estate Value Finding, 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. Anchor: #HYICTEBR
- Form ROW-A-8 Memorandum of Value Determination, used when a total compensation does not exceed $10,000.00. Anchor: #EPWHDUBQ
NOTE: Only qualified TxDOT ROW personnel may use forms ROW-A-7 Real Estate Value Finding or ROW-A-8 Memorandum of Value Determination, 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.
Market Data Files
Although not required, ROW 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.