Section 4: Form ROW-A-7, Real Estate Value Finding Report
Anchor: #i1004563Usage
On parcels having a value of $25,000 or less, Form ROW-A-7 Real Estate Value Finding, 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 Real Estate Value Finding, will be necessary.
The valuation process of using form ROW-A-7 Real Estate Value Finding 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 form ROW-A-7 Real Estate Value Finding is used for waiver valuations 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 ROW-A-7 Real Estate Value Finding, it is permissible that a ROW PD staff representative, knowledgeable of the parcel's area and familiar with land values complete the memorandum. Waiver valuation forms are not designed for use by Department Certified Appraisers.
If the use of the ROW-A-7 Real Estate Value Finding 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: Texas 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 Department 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 Real Estate Value Finding is not an appraisal, is to be prepared by a non-Department 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: #i1004585Instructions
- Anchor: #BLATRFCV
- Page 1 - This page identifies the parcel, RCSJ, property address, and other pertinent items. It also classifies the property as a whole or partial acquisition. The Federal Project Number, when applicable and the ROW CSJ are required on page 1. The “Purpose of the Appraisal” is stated and “Market Value” is defined. The “Certificate of Appraiser” includes the appraiser's estimate of value as of a given date, and 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. Anchor: #QYNMAGIE
- 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. Anchor: #BKCARITB
- Page 2 - Pertinent Photographs of the Subject & Estimated Value of Acquisition - At the top of this page, one color 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 Real Estate Value Finding 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 Comparable Data Supplement should be attached for each comparable used to achieve the value conclusion. Additionally, form ROW-A-7 Real Estate Value Finding 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 Real Estate Value Finding, a staff review appraiser will conduct an administrative review of the ROW-A-7, and prepare the ROW-A-10 Tabulation of Values 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 ROW PD review appraiser or neighboring district review appraiser.