Table of Contents
A. Data Documentation and Appraisal Reporting Standards
Part V Data Analysis and Conclusions After Acquisition 83
Introductory note: These analyses and valuation sections relating to the remainder property constitute a new appraisal. In cases of an insignificant taking, the remainder may be so similar to the whole property before the acquisition that the same highest and best use analysis and the same cost, market, and income data and analysis will remain applicable and can therefore be referenced and employed in analyzing and valuing the remainder property. However, a change in the basic physical or economic character of the reminder may result in a change in the remainder's highest and best use or the intensity of that use 84 and may result in damages 85 or benefits 86 to the remainder property which will require different market data and/or analysis than that which was used in the whole property valuation.
A-23. Analysis of Highest and Best Use. The appraiser shall state and explain the highest and best use of both the remainder land, as if vacant, and the remainder property, as improved. Impacts of the acquisition on the property's highest and best use, or the intensity of that use, shall be specifically addressed and described. If restoration or rehabilitation of the remainder property will be required before it can be put to its highest and best use, the physical and economic feasibility of such restoration or rehabilitation shall be explained and justified. Major restoration or rehabilitation may require the services of an expert in the field, such as an architect, engineer, and/ or contractor. 87 If the acquisition includes a temporary construction easement, or other temporary property interest, the effect of such temporary acquisition on the remainder property's highest and best use must be discussed. 88
A-24. Land Valuation. The appraiser shall estimate the market value of the remainder land for its highest and best use, as if vacant and available for such use. 89
If the acquisition includes one or more temporary construction easements, the impact of those easements on the value of the remainder property should be accounted for in the valuation of the land, after acquisition. Any diminution in the remainder land value by reason of the temporary easements should be measured in accordance with Section D-10 of these Standards, and then be used as the basis for an adjustment to the remainder's land value in this section of the report. The diminution in the remainder's land value by reason of temporary easements should not be treated as an additive to be added to the difference between the before and after value of the property.
A-25. Value Estimate by Cost Approach. For cost approach application and reporting requirements, see Section A-16.
A-26. Value Estimate by Sales Comparison Approach. For sales comparison approach application and reporting requirements, see Section A-17.
A-27. Value Estimate by Income Capitalization Approach. For income capitalization approach application and reporting requirements, see Section A-18.
A-28. Correlation and Final Value Estimate. The appraiser shall describe the reasoning applied to arrive at the final estimate of value of the remainder property. If practical, the appraiser should give the same weight to the indications of value by the various approaches to value that were applied in the valuation of the whole property.
83. This part of these Standards is applicable only in partial acquisition appraisals.
84. See Section B-3.
85. See Section B-11.
86. See Section B-12.
87. See Section D-4.
88. See Section D-10.
89. For requirements of land valuation, see Section A-15.
Return to Table of Contents
|
