24-8225_EXHIBIT_A_-_Collier_County_Supplemental_Appraisal_Standards.pdf

EXHIBIT A

COLLIER COUNTY SUPPLEMENTAL APPRAISAL REQUIREMENT STANDARDS

(A Supplement to the Uniform Standards of Professional Appraisal Practice)

Narrative-form appraisal reports are frequently the preferred report format. Alternative report formats commonly utilized must be agreed to by the County. The following standards governing the preparation of written appraisal reports for Collier County, Florida are intended to clarify the expectations for the content of written appraisal reports prepared for the County. Where there may seem to be a conflict between these standards and the scope of any assignment undertaken for the County, the appraiser should consult with the County Division that requested the appraisal for further clarification. Each appraiser and appraisal firm qualified to provide appraisal services is responsible for obtaining and maintaining a current copy of the Uniform Standards of Professional Appraisal Practice (USPAP).

DATE OF VALUE

Unless a retrospective appraisal with a previous date of value was specifically ordered, or unless the appraiser has been specifically instructed otherwise (as for a date-of-deposit appraisal), the date of value of the appraisal, being the appraiser’s last inspection of the subject property, shall be within two (2) weeks of the date of submission of the draft appraisal report.

STRUCTURES

Where all or a portion of a structure is located on the real estate being acquired by the County, the appraiser shall include the following information in the narrative description of the property: [a] a statement as to the character (residential or business) of the structure’s occupant(s); [b] the name(s) of the occupant(s); and [c] a statement as to the legal status of the occupant (tenant with or without lease, owner-occupant, etc.)

PHOTOGRAGHS

When an exterior inspection is done, photographs capturing, at minimum, the front, back, and a street scene of any improvement on the real estate being appraised should be included in the report. Additionally, if an interior inspection is done, photographs capturing, at minimum, the kitchen, all bathrooms, main living areas, as well as any examples of deferred maintenance, recent restoration, or remodeling should be included. If the appraisal is for a partial acquisition, then photographs of the acquisition area and all improvements in the acquisition area should be included.

SALES LOCATION MAPS

Each written appraisal report shall contain at least one map of the comparable sales analyzed during the development of the appraisal. If the comparable sales cover such an extensive geographic area that a one-page map would be obscure, then more than one map is encouraged, each at a scale which is legible to the reader, i.e., where common streets, rivers, canals, city blocks, etc. are recognizable.

SALES DATA SHEETS

Sales Data Sheets must be accompanied by a location map which clearly shows the comparable sale property in relation to its neighborhood (which map may appear on the same page as the sales data). The following information must be readily apparent from a review of the map and/or the written information provided:

o Date of sale and recording data - Grantor / Grantee and type of conveyance instrument. If the sale property is in a County besides Collier, a copy of the deed of transfer must be provided as well.

o Location and legal description (a copy of the deed of transfer may be included with the sales data sheet precluding the need to reprint the property's legal description).

o Parcel size, access, and road frontage (if applicable).

o Present use and description of improvements (if any).

o Zoning.

o Existing and available utilities.

o Sale price, financing, cash equivalent price, and unit price.

o Verification data: parties to the transaction, comments on the motivation of the parties, comments as to how the parties allocated value among the land and various improvements (if available).

o Appraiser's comments.

SALES GRIDS

Each appraisal report shall contain a table of the sales most relied upon by the appraiser in reaching a final value reconciliation. This table (a/k/a "sales grid") must identify each sale by name, include the date of the sale, the size of the sale property, zoning, purchase price, unit price (and where appropriate, the price per dwelling unit), and a column or row for each item of comparison for which adjustments were made by the appraiser. The sales grid must also contain a column or row to show the subject's attributes in comparison with the most-relied-upon sales.

ADJUSTMENTS TO COMPARABLE SALES

All appraisal reports prepared for the County shall contain a detailed narrative explaining the adjustments made to the comparable sales including the appraiser’s reasoning and the data which forms the basis for the extent of each adjustment.

ROUNDING

All numbers below $1,000 will be rounded to the nearest $50 increment. All numbers above $1,000 and below $100,000 will be rounded to the nearest $100 increment. Everything over $100,000 will be rounded to the nearest $1,000 increment.

OWNER CONTACT

For acquisition appraisals, the appraiser shall contact the property owner to allow an opportunity for the owner or designated representative to accompany the appraiser during the inspection of the property. The appraiser shall include a statement within the appraisal report that describes the date of contact, with whom, and by what method (i.e. telephone, in person, email or other writing). Any written notice to the owner shall include a statement that the appraiser (and subcontractors, where applicable) will be required to enter upon the property or a portion thereof for appraisal purposes and that such entry is authorized by Section 127.01, read with Section 337.274, Florida Statutes. A copy of the notice shall be included in the appraisal report.

PARENT TRACT

After application of the three common tests to determine the parent tract for the subject property (contiguity, unity of use, and unity of ownership), the appraiser must include a sketch of the whole property in the appraisal report; and, in the case of a partial taking, must show on the sketch the part being acquired by the County. Unless Collier County provides the appraiser with a parent tract determination and an area calculation for the parent tract, it is the responsibility of the appraiser to calculate the area of the parent tract.

PARTIAL TAKINGS

Areas (in general) - While the area of the part being acquired will be provided by the County, it is the responsibility of the appraiser to calculate the area of the remainder tract.

Areas (easements) - Remainder areas should be the same after the taking of easements as the area of the parent tract prior to the taking. The value after the taking should reflect that a portion of the parent tract is encumbered by the easement taken by the County.

Cost-to-cure Severance Damages – In cases of pending condemnation or federal government involvement in an acquisition, appraisals should account for severance damages to remainder property. There must be damage to the remainder real estate before a cure can be applied. Damages must be supported with market data and specified in dollar terms. Without this supporting documentation, Collier County cannot be assured that the cost of the cure will be less than the damages to which the property owner would otherwise be entitled.

If the cure chosen by the appraiser includes a payment to the property owner to re-establish, construct, or install a feature upon the remainder, for which the property owner has been compensated in the value of the part taken, then the compensation for the taken feature shall be deducted from the total compensation due the property owner. For instance, if the compensation covers the depreciated replacement cost of fencing within the area subject to acquisition, and the proposed cure involves installing fencing on the remainder property to replace what was taken by the County, the depreciated replacement cost of the fencing already compensated must be subtracted from the overall compensation owed to the property owner.

To avoid disputes over the quality of relocation work performed by the County or its contractors, Collier County may seek to limit its liability by paying the value of the part taken for everything within the take area, and/or by paying the owner to relocate certain improvements onto the remainder at a location of their choosing.

Land and Affected Improvements Only on Improved Parcels - If it is the appraiser's judgment that the primary improvements located upon the remainder property are unaffected by the taking, and after consideration of the possibility of any damages accruing to the remainder property, the Appraiser may elect to prepare a before and after estimate of the value of the land only. Such before and after values must be clearly labeled in the appraisal report; and such an appraisal report must contain an explanation and brief discussion of the factors considered in electing not to appraise the value of the property as improved in both the before and after situations. A comprehensive narrative description and photographs depicting the improvements on the remainder area should still be included in the report.

Signs - Should a trade sign or income producing sign be discovered within the taking area, the appraiser should consult with the County for specific instructions on valuation and/or compensation regarding the signage. When preparing an appraisal report for condemnation, the appraiser should include the depreciated replacement cost of the signage in the total estimate of compensation due the property owner.

A cost to cure the damage resulting from the absence of the sign is then.

Special Benefits - The appraiser should consult with the County prior to assigning special benefits to a remainder property.