Section 6: Variances in Component Values
Anchor: #i1001203Policy
Major differences between appraisal reports on a parcel, either as to the total value or in the major component values for land, improvements, damages or enhancements, will tend to contradict a value recommendation based on such appraisal reports. These differences will also weaken the state’s position, not only concerning values for negotiation purposes, but also in eminent domain proceedings. A property owner could use the highest component values from each appraisal report and add them together in order to request an award considerably in excess of the total value indicated by any of the appraisal reports.
For those reasons, the review appraiser should attempt to reconcile major variances between the appraisal reports with their respective appraisers once the appraisal reports are first received by ROW PD. However, in order to permit the appraisers to make their independent finding of value (without knowledge of the opinions of value of other appraisers working on the same parcel), such attempts should be confined to pointing out errors or omissions in the reports. When it is not possible to reconcile the appraisal reports with the appraisers, an additional appraisal report(s) by another appraiser(s) may be necessary to reconcile the variance(s).