5-McLean County - NRCS Buyout - Appraisal IFB - Round 1.docx.pdf

Invitation For Bid 5082 McLean County NRCS Buyout Appraisal Services

Round 1

McLean County Fiscal Court is procuring the services from Certified Residential Real Estate Land Appraiser(s) certified in the State of Kentucky to provide appraisal services for approximately 20 (twenty) residential properties, in support of Floodplain Acquisition Projects.

Services to be provided include preparation of an estimate of the Fair Market Value of each parcel, prepared in accordance with the Uniform Standards for Professional Appraisal Practice (USPAP). The estimate is to reflect the Fair Market Value immediately prior to the flood, which occurred in April, 2025, unless specified by the Buyout Team.

Please note: Every appraisal report will be reviewed to ensure all Uniform Standards for Professional Appraisal Practice have been followed. Appraisers must comply with professional reviewers, NRCS, and the Buyout Team to make corrections or updates to any information to ensure proper practices were followed. Additionally, there are steps each property must pass through before being appraised. As such, properties may be ready for appraisal at differing times. Invoices will be paid after each report has been approved. If an appraiser fails five or more appraisal reviews, the county may re-award the property to another appraiser.

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Submission:

● Bids and all required forms shall be submitted through the online DFS Procurement Portal at dfs.bonfirehub.com/portal no later than April 27th, 2026, at 9:00 a.m. CST.

Submissions received after the due date and time will be considered non-responsive and will not be considered.

● Bids will be opened on April 27nd, 2026 at 10:00 a.m. CST at the Fiscal County Judge Executive's Office.

● Award will occur at the Fiscal Court meeting scheduled for April 30th, 2026 at 9:00 a.m.

ET.

● Questions regarding bids should be submitted in the procurement portal. For questions regarding procurement portal navigation, email: procurement@erassist.com.

● Required Documents for Submission:

○ Copy of Insurance (liability coverage and workers' compensation)

○ Copy of License and Accreditation

■ State license or certification in accordance with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).

○ Proof of active registration with the federal System for Award Management (SAM) https://www.SAM.gov is required and shall be submitted in the procurement portal.

Awards will be made per property. There is no guarantee of the quantity of work. Structures may fall out of the program, be awarded to another contractor to meet state deadline requirements, or be purchased through another program. Multiple firms may be used if needed to meet the scheduling needs of the county. Preparation of appraisals may not begin without written documentation (email) of Notice to Proceed.

The County reserves the right to negotiate with any and all individuals or firms that submit bids.

Questions:

buyout@erassist.com or 270-513-0226

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Scope of Work

Appraisal Overview

● In accordance with the URA, 49 CFR §24.103 Criteria for appraisals, the appraiser shall disregard any decrease or increase in the fair market value of the real property caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for the project, other than that, due to physical deterioration within the reasonable control of the owner. (See URA, Appendix A, 49 CFR §24.103(b).)

● The appraisal must meet the requirements of the USPAP and these appraisal specifications. The appraisal report may consist of a form report, a narrative report, or a combination of both.

● The appraisal report must contain the level of detail, discussion, and support necessary for the client and intended users to comprehensively understand the rationale for the opinions and conclusions, including reconciliation of the data and approaches used in the appraisal. The detail must thoroughly explain and support the property description, highest and best use analysis, market characteristics, adjustment process, and all conclusions so that all review appraisers and NRCS users have an adequate understanding of the statements, opinions, and conclusions offered within the report.

● The appraiser must personally inspect the subject property and comparable sales. The appraiser must talk personally to the property owner or the owner’s agent or representative, and the property owner or the owner’s agent or representative given an opportunity to accompany the appraiser during the appraiser’s inspection of the property.

This must be documented in the report.

○ Reports must attach these instructions and any engagement documents provided to the appraiser by the client as addenda.

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Required Elements for Appraisals

● Title Page

● Letter of Transmittal

● Table of Contents

● Summary of salient facts, section will follow the table of contents, should be limited to one page, and include at a minimum:

○ Subject property name

○ Address (911 address) and County

○ Project name: NRCS Program: Emergency Watershed Protection

Program-Buyouts

○ The owner's name or other identification of the property

○ Client’s name: McLean County Fiscal Court

○ Appraisal Standard: USPAP

○ Intended Users

○ Use/Purpose statement

○ Interest Appraised

○ Size (square feet or acres)

○ Property description (and in the case of a partial acquisition under URA, an adequate description of the remaining property) (Brief)

○ Zoning classification

○ Water rights/mineral rights as applicable

○ Improvements (list structures)

○ As of the current date or the day before the qualifying disaster event, as directed by the NRCS state EWP Program point of contact.

○ Appraiser shall assume that all appurtenant fixtures, plumbing, heating, built-in appliances, electrical, ventilation, A/C, and anything permanently attached to the house (e.g. sinks, faucets, ceiling fans, cabinets, flooring, doors, windows, mantels, light fixtures, bathtubs, toilets, showers, vanities, countertops, etc.) will remain after closing and should therefore be considered in the appraised valuation. Note: plug-in appliances such as refrigerators, electric stoves, etc. will be considered personal property and should not be considered in the valuation.

○ Analysis of highest and best use:

■ A minimum 5-year sales history of property

■ Opinion of value: As of the current date or the day before the qualifying disaster event, as directed by the County

■ Other values, if applicable, due to special instructions

○ Effective date of the report

○ Date of report

○ Appraiser certification

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○ Photographs of the subject property:

■ Provide original color photographs or high-quality color copies of photographs of the appraised property and any comparable sales used in the report. Photographs may be on separate pages but must include date taken and by whom. Provide original color photographs or high-quality color copies of photographs, including interior and exterior improvements.

All rooms should be sufficiently captured to be able to identify finishes and conditions of residence. Provide photos of outbuildings, both interior and exterior. Photographs may be supplemented with prior landowner photos of the interior if using the day before the disaster event as your valuation basis. If using landowner-furnished photos, they must be dated.

○ Statement of assumptions and limiting conditions:

■ All appraisal reports submitted to the County and NRCS for review become the property of both the United States and the County and may be used for any legal and proper purpose. Therefore, a condition that limits the distribution of the report is not permitted. Include a statement equal to the following in this section: “I recognize that appraisal reports submitted to the NRCS for review may be used by NRCS for any legal and proper purpose.”

■ If the appraisal has been made subject to any encumbrances against the property, such as easements, these must be stated. It is unacceptable to state that the property has been appraised as if free and clear of all encumbrances, except as stated in the body of the report; the encumbrances must be identified in this section of the report.

○ Do not include limiting conditions that significantly restrict the application of the appraisal.

○ A contract appraiser cannot make assumptions or accept an instruction that is unreasonable or misleading. Client instructions and prior to disaster condition documentation must be accurate and be included in the appraisal report.

● Legal description

● Area, city, and neighborhood data

● Property data:

○ Site

○ Improvements, including square footage; number of rooms; number of bedrooms/bathrooms, garage square footage and number of bays;

basement square footage and condition (e.g. finished/unfinished); number of fireplaces and other pertinent amenities; HVAC type and information;

any details/information that impacts the appraiser’s valuation opinion.

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○ Fixtures and appurtenances like natural gas connections, water/sewer connections, septic systems, heating/fuel type, etc.

○ Use history

○ Sales history:

■ For USPAP appraisals, include a 5-year record of all sales of the appraised property and offer to buy or sell if the information is available. If no sale has occurred in the past 5 years, the appraiser must report the last sale of the property, irrespective of date.

○ Assessed value and annual tax load.

○ Zoning and other land use regulations. The contract appraiser must identify, in addition to zoning, all other land- use and environmental regulations, outstanding rights, and reservations that have an impact on the highest and best use and value of the property.

○ Appraised property map or plat. Show the dimensions and topography of the appraised property in detail on a large-scale topographic map, at least 2 inches to the mile. The map may be placed here or in the addenda.

○ Analyses of highest and best use. For USPAP appraisal the contract appraiser may refer to definitions as found in “The Dictionary of Real Estate Appraisal.”

○ Value estimate by the cost approach:

■ Estimate the value of the land as though vacant and available for its highest and best use. Estimating land value using confirmed sales of comparable or nearly comparable lands having like optimum uses is the preferred method.

■ If the cost approach is not used, explain the reasons for not using this approach. Value estimated by the sales comparison approach:

Exhibits and Addenda

● Location maps:

○ Maps must clearly identify the property and be of sufficient quality to enable the review appraiser to locate the property on the ground. Maps must be dated and include a legend, scale, at least two streets, and north arrow.

● Area Map. This is a small-scale map showing the general location of the subject market area.

● Plat map or Tax Assessor’s Parcel Map. This map shows the appraised property and its immediate neighborhood with rough property boundary locations and dimensions.

● Comparable data maps:

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○ This map must show the location of the appraised property and the sales.

If all pertinent comparable sales cannot be shown on the same map as the appraised property, a smaller-scale map may be included in addition to the larger-scale map.

● Details of comparative data

○ Include all information for each comparable transaction used in the appraisal.

○ Plot plan, if applicable

○ Floor plan, if applicable

Technical Appraisal Reviews

● All appraisal reports are subject to a technical appraisal review ordered by the Sponsor or NRCS and conducted for compliance with appraisal instructions and USPAP, prior to acceptance for reimbursement by NRCS.

● The Sponsor will order the technical appraisal review.

● The review appraiser is not assigned to review the appraisal until a final version is received from the Sponsor.

● The review appraiser will provide a technical appraisal review report approving the appraisal or not approving the appraisal for agency use. The technical review contractor may not be in the same company as the original appraiser.

● During the review process, the reviewer will identify any corrections or additions needed. The appraisal will be returned to the appraiser if significant changes are necessary. The review appraiser may contact the appraiser directly for clarification and report corrections.

● The review appraiser shall prepare a signed certification that states the parameters of the review. The certification shall state the approved value and the amount believed to be just compensation for the acquisition.

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