Attachment B - Statement of Work.docx

United States Department of Agriculture Forest Service Eastern Region 626 E. Wisconsin Avenue Milwaukee, WI 53202

Coffman Purchase, Mark Twain National Forest

June 13, 2025 To: Potential Vendors

STATEMENT OF WORK (SOW)

Appraisal Tracking No.

FS25-0905-0619

National Forest Mark Twain Project Name Coffman Purchase Case Number 2518-2 Case Type Purchase Appraisal Product Nonfederal Land Appraisal

Do not deviate from these instructions unless the FS Review Appraiser(s) amends them for you in writing. Any deviation from written instructions in the appraisal will render it invalid. The following is subject to minor modifications based on updated parcel-specific information. Changes will be considered incidental and will not result in additional costs to the contract.

This Statement of Work and Exhibit 1, the Statement of Work Addendum, are to be included in the addendum to the appraisal report.

The Contract Appraiser shall submit the appraisal report, and any consultant reports only to the Review Appraiser for technical review. Release of the appraisal report, either internally or externally, may occur only after it has been reviewed and approved for Agency purposes by the assigned Review Appraiser. The Regional Director of Lands has the authority to determine if release is appropriate. The unauthorized release of an appraisal report prior to completion of review will invalidate its use in supporting an Agency action (FSM 5410.71.5).

Potential Contract Appraisers shall disclose prior appraisal work on the Subject Property in accordance with USPAP requirements which states: any current or prospective interest in the Subject Property or parties involved; and any services regarding the subject property performed by the appraiser, as an appraiser or in any other capacity, within the three-year period immediately preceding the agreement to perform the assignment shall be disclosed to the Client.

The appraisal shall comply with the Federal Uniform Relocation and Assistance Act (URA) (42 U.S.C. 46040), the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA), the Uniform Standards for Professional Appraisal Practice (USPAP), and Forest Service Handbook 5409.12. If any of the provisions of USPAP conflict with those of UASFLA, then the standards of UASFLA take precedence under the Jurisdictional Exception of USPAP.

The following information is preliminary, and you are to use the most current, up-to-date and correct data within the report.

Subject Identification & General Information

Purpose: The purpose of this appraisal is to estimate the market value of the real property herein described.

Client: Director of Air, Water, Lands, Soils, and Minerals, Eastern Region, USDA Forest Service

Intended Users: The intended users of the appraisal are the Director of Air, Water, Lands, Soils, and Minerals, Eastern Region, USDA Forest Service; Forest Supervisor of the Mark Twain National Forest; Forest Service Review Appraisers and the USDA Office of General Counsel.

Intended Use: The appraisal report will be used by the USDA Forest Service as the basis to acquire the non-federal land.

Subject Property Overview The property is comprised of a rectangular parcel totaling ±39.6 acres. The property has two structures, a house structure and an old cabin used as a barn. Both are in dilapidated condition, and the Mark Twain National Forest reports that are close to collapsing. The appraiser should use caution around these structures.

The property is currently unoccupied and is primarily forested with white and red oak, with pockets of cedar. Notably, the property has glades and rock outcrops. On roughly half the acreage, the soils are rock outcrop or very stony. There is no lake or river frontage, but there is a small seasonal spring near the old house. There is the potential for bat roost trees for proposed and endangered bat species on this parcel.

This rural parcel, located in Christian County, Missouri is surrounded by Forest Service lands. Please refer to the enclosed map(s) for reference.

Personal Property

None known.

Property Access

The appraisal report shall describe both the legal and physical access to the subject property.

Legal and physical access is by way of FR 617 from Merrit Road. FR 617 is gravel and traversable only a short distance by high clearance vehicles. Please note that the remainder of the road is currently only suitable for foot traffic and/or UTV/ATV access due to significant rutting.

Access to the lands is subject to the rights of the USDA Forest Service to regulate the use of roads providing access to the subject premises. The appraisal report must describe how the market treats such access.

Driving Directions:

From Ava, MO, travel south approximately ten miles on Highway 76 W, turn onto Highway T and travel approximately 5.3 miles until you reach CR 450. Continue approximately 0.9 miles onto Merritt Road. The access road to this parcel is labeled on the ground as Forest Service 617. The distance from Merritt Road to the subject property is a little more than half a mile. FR 617 traverses the subject parcel, because the Forest Service acquired a ROW easement for the road across the subject property in 1984.

Legal Description (per LDV)

The legal description has been verified and prepared by a Forest Service Surveyor and must be reported verbatim. However, UASFLA’s requirement to verify the legal description must still occur and any discrepancies found during the appraisal process are to be brought to the attention of the review appraiser prior to submitting the report.

Oil, Gas, Mineral, Sand/Gravel Assets

The property should be appraised as-is with respect to known mineral interests. There are no known assets. Minerals will transfer with the property.

Timber

All timber rights are being conveyed with the land. The property is primarily forested with white and red oak, and pockets of cedar. The appraiser is expected to make a determination of the feasibility and relevance of timber production as part of the Highest and Best Use (HBU) analysis. If the HBU includes commercial timber production, the appraiser shall support the contributory value of the timber with market evidence.

It is not anticipated that a timber cruise will be required. However, please notify the Review Appraiser if you determine a timber cruise is necessary to achieve credible assignment results. This notification generally occurs subsequent to inspecting the subject property and often after completing the highest and best use analysis and identifying potential comparable sales. Please note that justification supporting your determination that a timber cruise/valuation is necessary to achieve credible assignment results must be provided to the review appraiser.

If the appraiser determines he/she needs timber inventory data, the appraiser and the Forest Service will negotiate how the cruise will be completed in a manner that can be confirmed by Forest Service check cruisers. Both parties will negotiate a change to the contract to add an additional item (a cruise) to the schedule of items, as well as any needed adjustments to the fee and deliverable timeline, at the time of need.

Water Features

All water rights are being conveyed with the land. There is a small seasonal spring on the western side of the property near the old homeplace.

Water Rights

Not required.

Utilities

The property does not have utilities available. The Mark Twain National Forest reports that there is cell phone service on portions of the property.

Improvements

There is a dilapidated early 1900’s home as well as a barn in commensurate condition located on the property. There is old fencing and old household items on the property. A deer stand was noted during a prior inspection. The Appraiser should report to the Review Appraiser any improvements which may have contributory value and are noted during the inspection. Please use caution during the inspection.

All Appropriate Inquiry

As of this writing, there is no evidence of hazardous waste materials and no dumps. There is some trash and old household items on the property. We are requesting that the lands be appraised as though the property is unaffected by hazardous material. If found to be so affected, the property shall be remediated prior to conveyance and a re-evaluation of the opinion of value.

UASFLA requires the reporting of seven critical elements that defined the appraisal problem to be solved in the Scope of Work section:

Definition of Value: Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal (UASFLA 1.2.4). This definition of value must be placed in the Scope of Work section of the report in accordance with UASFLA 2.3.1.8.

Estate Appraised: The estate to be appraised is all rights, title, and interest in and to +/- 36.9 acres of land belonging to Lisa Lynn Coffman and Bobby Randall Coffman with no reservations and subject to:

Easement to United States of America, recorded in Book 207 Page 555, Christian County Recorder's Office.

NOTE: Any additional outstanding rights, encumbrances, or unauthorized occupancies discovered during the appraisal process are to be brought to the attention of the review appraiser prior to submitting the report.

NOTE: The appraiser must address what affect, if any, the outstanding rights have on market value.

Hypothetical Condition: None

Extraordinary Assumption: Include the following extraordinary assumption verbatim in your report:

The property is unaffected by hazardous material, and if found to be so affected, the property shall be cleaned up or the effect of the hazardous substances or petroleum products shall be remediated prior to conveyance.

Remember to state that this assumption may have affected assignment results.

Jurisdictional Exception: The reader should note that this definition of market value, required by the Uniform Appraisal Standards for Federal Land Acquisitions, is not “linked” to a specific “exposure time” estimate as required by the Uniform Standards of Professional Appraisal Practice (USPAP, SR 1-2-c). Such estimates are inappropriate for, and should not be included in, appraisal reports prepared for federal land acquisitions under these standards (4.2.1.2, UASFLA, 2016). This appraisal therefore invokes the Jurisdictional Exception Rule and does not include an opinion of reasonable exposure time.

Property Inspection

For this assignment, the Appraiser must make an on-site, physical inspection (on the ground) of the subject property and all the market properties used in direct comparison unless the Review Appraiser has approved other conditions in writing. The contractor should prioritize safety during any appraisal activities in the field.

The Appraiser must certify in the report that he/she extended an offer to the property owner (or the owner’s representative) to accompany him/her during the property inspection. (UASFLA, Section 2.3.1.4, page 58). Please contact the owner representative directly after notification of the assignment award to arrange a date and time for inspection. Other persons to be notified in advance of the inspection will be provided upon award.

The landowner’s representative and principal contact are:

To be provided to the appraiser once the appraisal assignment has been awarded.

Larger Parcel

As this request is for a proposed federal acquisition, the Appraiser must identify the larger parcel, or larger parcels (should multiple larger parcels be determined), which satisfies the tests of unity of title, unity of highest and best use (integrated use), and contiguity as it relates to the highest and best use. UASFLA requires that the Appraiser’s analysis that led to the larger parcel determination and the determination itself be reported. This is considered an integral part of the highest and best use analysis. (UASFLA 1.2.7.3.1, 1.4.3-1.4.7, 2.3.3.1, & 4.3)

The Appraiser must conduct all research necessary for a well-supported larger parcel(s) conclusion presented in the appraisal. UASFLA requires that the Appraiser’s analysis that leads to the larger parcel determination and the determination itself be reported and is considered an integral part of the highest and best use analysis. The highest and best use analysis is to be comprehensive, reasonable, and thoroughly supported.

It is the Appraiser’s responsibility to identify any and all lands having unity of ownership in conjunction with unity of highest and best use for the purposes of determining the larger parcel(s). The Appraiser is to notify the Review Appraiser in advance concerning any preliminary larger parcel determination issues. Communication between the Review Appraiser and the Contracted Appraiser is essential since the Appraiser’s larger parcel conclusion may require a modification of the appraisal assignment.

If the Appraiser determines there are multiple larger parcels, the appraiser should comment on any discount or benefit to the portfolio, if any, due to marketing the parcels at the same time.

Highest and Best Use

Section 1.4.4 of UASFLA defines highest and best use as “The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future.”

Appraiser’s Use of Consultant’s Reports

Based on currently known information, no need is anticipated for sub-specialty or consultation reports. If your inspection of the property reveals the need for any additional reports or studies, please communicate immediately with the Review Appraiser(s). Ultimate use of consultant reports will require compliance with Section 1.13 of UASFLA which states:

The Appraiser cannot merely accept such consultant reports as accurate, but rather must review such reports and adopt them only if reasonable and adequately documented and supported. The results of secondary valuation reports, such as mineral, fixture, or timber valuations, cannot simply be added to the value of the land to arrive at a value of the property as a whole without proper analysis by the Appraiser. To do so is a violation of the unit rule and professional standards. The Appraiser must consider these components of the property in light of how they contribute to the market value of the property as a whole.

Ownership/Occupant

The ownership is: Lisa Lynn Coffman and Bobby Randall Coffman recorded in Book 2023L, Page 4261, Instrument #2023L04331 dated April 21, 2023.

Opinion of Value

If the larger parcel is appraised on a “per acre” basis (versus on a “per lot” or “per site” basis), it is requested that in addition to stating the final value conclusion of the larger parcel within the appraisal report, the unit value (e.g., $XX/acre) be stated along with the range of acreage within which that unit value would be valid (e.g., $XX/acre is valid for a range of XX-XX acres). This range would consider no material changes to the physical characteristics of the larger parcel.

Additionally, if it is determined the improvements contribute to value, the value contribution of the improvements should be stated in the report. If the improvements did not contribute to the overall value, please indicate that in the report.

Subject Property Exhibits

The following Subject Property Exhibits are being provided as attachments to this SOW:

1. Vicinity Map

2. Property Map(s)

Additional exhibits containing private landowner identifying information will be provided only to the Awarded Appraiser:

3. Preliminary Title Commitment – Must be included in the addenda of the appraisal report.

4. Landowner’s Deed and Easement – Must be included in the addenda of the appraisal report.

5. Land Description Verification Form – Must be included in the addenda of the appraisal report.

6. Topographic Maps

7. Aerial Photos

8. Landowners Contact Info and Permission to enter property

9. Link to Shape Files available upon request

Report Delivery

A link to the project data room will be provided to the Appraiser. The Appraiser shall submit one original PDF appraisal report to the Review Appraiser by uploading it to the project data room. The Review Appraiser will then review the appraisal report for acceptance or suggest revisions. Upon approval, please upload a final electronic copy in PDF format of the approved appraisal report for the Review Appraiser. Please do not email the appraisal report. Please do not submit paper copies of the appraisal report.

Contract time will proceed according to the following phases. Upon the completion of one phase remaining contract time shall not be carried forward.

PHASE 1 – Delivery of report within 45 calendar days of the Notice To Proceed is preferred. The Appraiser may propose a longer, alternative delivery period, but a shorter delivery date is preferred. The appraisal report shall be submitted to the Review Appraiser within 30 calendar days after the date of value, unless otherwise specified in writing by the Review Appraiser.

PHASE 2 - 14 calendar days - The Review Appraiser shall review the appraisal report for acceptance.

PHASE 3 - 14 calendar days - The Appraiser shall correct any deficiencies, if any, and submit revised appraisal report to the Review Appraiser.

PHASE 4 – 10 calendar days - The Review Appraiser shall review the revised appraisal report for acceptance.

Pre-work Conference. A pre-work meeting with the Review Appraiser, the Appraiser, and possibly the Contracting Officer will be required immediately after award. A conference call is acceptable.

The Appraiser has an obligation of confidentiality to the Client. The Appraiser is urged to read the accompanying Statement of Work Addendum carefully, including the section regarding Client and Client Confidentiality.

Federal appraisals are subject to disclosure under certain situations. The appraisal and information contained in the appraisal may be shared with the landowner or others, including the public. Therefore, discussions of comparable sales within the analysis should be generic in nature to minimize redaction should the appraisal or portions of the appraisal be released.

Exhibit 1

STATEMENT OF WORK ADDENDUM

The project consists of an appraisal of the specified property. For the purposes of this addendum, any appraisal report will be considered as meeting the “Uniform Standards of Professional Appraisal Practice” (USPAP) requirements for an appraisal report if it has been prepared in accordance with the “Uniform Appraisal Standards for Federal Land Acquisitions” (UASFLA). The report shall provide an estimate of market value for the estate to be appraised and shall conform to the editions of USPAP, published by The Appraisal Foundation, current as of the date of the report, as well as UASFLA.

The contract appraiser may be provided a pre-determined date of value for the entire project; otherwise, the date of the value estimate shall be the last date the contract appraiser inspected the appraised property.

If clarification of these instructions is needed and/or to arrange for the site inspection and pre- work meeting, the contract appraiser shall contact the assigned staff Review Appraiser, who is also the Contracting Officer Representative (COR).

The contract appraiser’s contact is limited to the Contracting Officer, the Review Appraiser, and the Regional Appraiser. The contract appraiser shall notify the assigned Review Appraiser of any requests for information by other Forest Service officials.

Should the appraiser determine that any of the information provided herein or in the case specific appraisal assignment letter is incorrect, or other Forest Service officials provide information that is contrary to the case specific appraisal assignment letter, the appraiser should contact the Review Appraiser for clarification. Only instructions from the Contracting Officer and/or the Review Appraiser are valid for this contract.

Appraisal Report. The contract appraiser selected for the assignment shall make a detailed field inspection of the subject property(ies) as identified in the appraisal assignment letter and conduct as many investigations and studies as necessary to derive sound conclusions to prepare the appraisal report.

Pre-Work Conference. At the request of the Contracting Officer and/or the Review Appraiser, the contract appraiser and any person identified who will be working on the appraisal, will be required to attend a pre-work conference call for discussion and understanding of these instructions.

Examination Notice. The contract appraiser shall provide the property owner and the Government 10 days advance notice of the examination date and shall give the owner, or the designated representative, and the Government an opportunity to accompany the contract appraiser during the inspection of the properties. These notices shall be documented in the contract appraiser’s transmittal letter of the appraisal report. The contract appraiser shall certify that the contract appraiser has personally visited the appraised property(ies) and all of the comparable transactions used in the comparative analyses.

Site Inspection. The Appraiser should prioritize safety during any appraisal activities in the field. The contract appraiser shall certify that the contract appraiser has personally visited the appraised property(ies), and all the comparable transactions used in the comparative analyses. It is not the contract appraiser’s responsibility to provide transportation to the landowner or other representatives who may go on the site inspection.

Definition of Terms. Unless specifically defined in the appraisal assignment letter or in either USPAP or UASFLA, definitions of all terms are the same as those found in “The Dictionary of Real Estate Appraisal” (Appraisal Institute), current edition. The UASFLA shall take precedence in any differences among definitions.

Technical Specifications.

Application of These Specifications: These technical specifications reflect the standards for the appraisal of property to be acquired or conveyed by the Forest Service. Unless defined for the contract appraiser in the assignment, the specifications require the contract appraiser to analyze and determine the larger parcel. If it is determined that the estate to be appraised contains multiple larger parcels, the contract appraiser shall consult with the Review Appraiser for possible additional direction. For exchanges, the larger parcel will be specifically defined in the Agreement to Initiate (ATI).

Federal Law Controls: Federal law may differ from the laws of some states and supersedes State law when they conflict. Accordingly, it is incumbent upon the contract appraiser to understand the applicable Federal law as it affects the appraisal process in the estimation of market value. Federal law is reflected in UASFLA. The specifications in this appraisal contract follow UASFLA format, with emphasis on issues of special concern to the Forest Service. It should not be construed that the contract appraiser is to consider only the emphasized items. Appraisal reports shall be prepared in compliance with UASFLA standards and Forest Service appraisal instructions provided by the Review Appraiser and/or the Contracting Officer.

One aspect of the UASFLA that the contract appraiser should be aware of is the “unit rule.” The unit rule requires valuing property as a whole rather than by the sum of the values of the various interests into which it may have been carved. A second aspect of the unit rule is that different elements or components of a tract of land are not to be separately valued and added together.

UASFLA and USPAP Conflicts: Conflicts between UASFLA and USPAP are minimal.

When there is conflict, UASFLA takes precedence. It may be necessary to invoke the Jurisdictional Exception Rule to USPAP to meet certain standards of the UASFLA. Invocation of the Jurisdictional Exception Rule should never be invoked lightly and must include citation of the over-riding Federal policy, rule, or regulation that requires it. Any jurisdictional exceptions not specifically cited in the UASFLA shall be discussed with the assigned staff review appraiser.

Comprehensive Review: Federal law requires review of all appraisals by a qualified review appraiser to assure they meet applicable appraisal requirements, including those in UASFLA, Forest Service policy, and these specifications. Compliance with USPAP will also be reviewed. Findings of deficiency shall be discussed and corrections requested once the appraisal report has been delivered. A value estimate is acceptable for agency use only after the assigned staff review appraiser has approved the appraisal report.

Client and Client Confidentiality: The appraiser has an obligation of confidentiality to the client. Appraisers are to receive and discuss appraisal instructions from the Contracting Officer and COR ONLY. The appraiser is not to provide appraisal information, analyses, or opinions of value to any party (owner, nongovernmental organization (NGO) representatives, or National Forest staff) before the appraisal has been reviewed and approved for Forest Service use by the COR/review appraiser. Inappropriate discussions with third party facilitators, property owners, or the release of appraisal information to unauthorized parties jeopardizes the appraisal process and will be considered a violation of the contract for appraisal services.

Release of the Appraisal to Others: Freedom of Information Act provisions, other rules or policies, and various situations may result in the release by the Forest Service of all or part of the appraisal report to others, including the public and the landowner(s). Prepare the report so that:

a. Analytical methods and techniques are explained (in so far as possible) in a manner understandable to the public, as well as the reviewer.

b. If providers of information request confidentiality, this information is not included in the report. Confidential information shall be made available to the Review Appraiser and/or Contracting Officer upon request but shall not be incorporated in a Forest Service system of records.

Format. The report shall be electronic PDF, sized at 8 1/2 by 11 inches per page, with all parts of the report legible. The face of the report shall be labeled to identify the appraised property(ies) and show the contract number, the appraisal tracking number, the appraiser's name and address, and the date of the appraisal. All pages of the report, including the exhibits, shall be numbered.

Contents. The suggested format is based on UASFLA. Although it is not required that the contract appraiser strictly adhere to it, all items must be addressed. It should be noted that in most instances, these specifications reference UASFLA without reprinting them here. Important items are noted below but are not all- inclusive. It is incumbent upon the contract appraiser to read, understand, and comply with UASFLA and these specifications.

Part I - Introduction. Follow the UASFLA format.

1. Title Page.

2. Letter of Transmittal.

3. Table of Contents.

4. Appraiser’s Certification. Follow the UASFLA and USPAP guidelines, but include the following:

"I have made a personal inspection of the appraised property which is the subject of this report and all comparable sales used in developing the opinion of value. The date(s) of inspection was , and the method of inspection was .” (If more than one person signs the report, this certification must clearly specify which individuals did and which individuals did not make a personal inspection of the appraised property. The contract appraiser must inspect the appraised property.)

"In my opinion, the market value (or other value as required) is $ as of (date).

5. Summary of Salient Facts and Conclusions.

6. Photographs of Subject. Provide original color photographs or high-quality color copies of photographs of the appraised property(ies). Electronic copies of the photographs may be included in a PDF version of the report. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property(ies) and comparable sales. Show the following information with each photograph:

a. Identify the photographed scene. Indicate direction of view, vantage point, and other pertinent information. A map may be used to show some of this information.

b. The name of the photographer.

c. The date the photograph was taken.

7. Statement of Assumptions and Limiting Conditions. All appraisal reports submitted to the Forest Service for review become the property of the United States and may be used for any legal and proper purpose. Therefore, a condition that limits distribution of the report is not permitted.

If the appraisal has been made subject to any encumbrances against the property, such as easements, that shall 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.

The use of an uninstructed assumption or hypothetical condition that results in other than “as is” market value will invalidate the appraisal. Include only factors relating to the appraisal problem. Assumptions and limiting conditions that are speculative in nature are inappropriate. Do not include limiting conditions that significantly restrict the application of the appraisal.

In this section of the specifications, or in separate written instructions, the contract appraiser shall be instructed as to necessary hypothetical conditions or extraordinary assumptions. For conveyances of Federal land, include a hypothetical condition stating that the Federal land is appraised as if it is in non-Federal ownership and zoned consistent with similar non-Federal property. Do not add additional hypothetical conditions or extraordinary assumptions without the approval of the COR and/or Contracting Officer.

A contract appraiser cannot make an assumption or accept an instruction that is unreasonable or misleading. Agency instructions and/or legal instructions shall have a sound foundation, be in writing, and included in the appraisal report.

8. Scope of the Work. A full understanding of the critical assignment elements is essential to a proper scope of work that will enable appraisers to solve the appraisal problem. UASFLA requires the seven (7) critical elements, identified in Section 1.2, to be addressed and report in the description of the Scope of Work section of the report (Section 2.3.1.8).

a. Client (1.2.1) (Provided in the Statement of Work (SOW))

b. Intended users (1.2.2) (Provided in SOW)

c. Intended use (1.2.3) (Provided in SOW)

d. Type and definition of value (1.2.4) (Provided in SOW)

e. Effective date (1.2.5) (Typically, is the last date of inspection)

f. Relevant characteristics about the subject property (1.2.6) also referred to as property characteristics (2.3.1.8)

i. Property Interest(s) to be appraised (1.2.6.1) (Provided in SOW)

g. Legal description (1.2.6.2) (Provided in SOW)

i. Appraiser should still verify the legal description

1. On the ground during a physical inspection of the property

2. With the owner of the property (if possible)

3. Comparing it with aerial or other available maps

4. Comparing it with public records

ii. There is no reporting requirement of the actual legal description in this section of the report as it is required to be reported under the factual data section. However, it would be helpful to report the legal description was provided and verified to be accurate.

iii. Property Inspections (1.2.6.3)

1. The appraiser (the lead/contracted appraiser) must personally inspect the subject property(ies)

iv. Contacting landowners (1.2.6.4)

1. During the course of inspecting the subject property, the appraiser is expected to meet with property owner or representative, if possible (Contact information to be provided)

2. The owner or owner’s designated representative must be given an opportunity to accompany the appraiser on the property inspection

9. Assignment conditions (1.2.7)

b. Instructions, hypothetical conditions, extraordinary assumptions (1.2.7.1)

i. Includes any special instructions which are typically in writing and provided in the SOW

ii. Only hypothetical conditions and extraordinary assumptions provided in the SOW is to be included

1. The appraiser has the burden of clearly identifying and explaining the implications of any hypothetical condition or extraordinary assumption adopted. The required explanation and discussion of the implications of such hypothetical conditions or extraordinary assumptions must be included in this portion of the appraisal report. Each hypothetical condition and extraordinary assumption must be labeled as such and any legal instructions must be included in the addenda of the report. (2.3.1.8)

iii. Jurisdictional Exceptions (1.2.7.1.2) (Provided in SOW )

iv. See 1.2.7.3 through 1.2.7.6 for additional items considered part of the assignment conditions

10. Additional reporting requirements under scope of work:

a. Should describe:

v. The investigation and analysis in developing the appraisal

vi. The geographical area and time span searched for market data

vii. Include a description of the type of market data researched and the extent of market data confirmation

viii. State references and data sources relied upon in developing the appraisal

b. Shall discuss:

ix. The applicability of all approaches

x. The exclusion of any approach to value

Part II - Factual Data.

1. Area, City, and Neighborhood Data. The use of boilerplate demographic and economic data is unnecessary and undesirable. Report only data that directly impacts the market analysis. Include the distance to the closest town/city that provides services.

a. Area Map. Include a small-scale map showing the general location of the appraised property. It can be placed here or in the addenda.

b. Neighborhood Map. Show the appraised property and its immediate neighborhood. The map may be placed here or in the addenda.

2. Property Data. Include the following:

a. Site Description: Dimensions, size, shape, vegetative cover, soil types, topography, elevations, wetlands, flood plains, view, timber, water rights, effect of encumbrances, livestock forage, access, road frontage, utilities, location, or other characteristics that may affect value.

• A statement must be made concerning the existence or absence of mineral deposits having a commercial value. Evidence, if any, of hazardous substances shall be described by the contract appraiser.

b. Location: Location descriptions shall be sufficient to enable a reviewer to locate the property with a road map during a field inspection. The location description shall be with reference to roads (ex. South side of Route XYZ, approximately 2 miles east of County Road 321, in Boondoggle County, Wisconsin. A clear location description is required for all parcels including those with remote locations.)

c. Access: Separate discussions for legal access and physical access to the property.

• Legal access shall be clearly identified. Legal access is typically via direct frontage on a public road or recorded easement for ingress/egress. Other types of legal access should be clearly described. The appraisal should include a clear statement as to whether the property has legal access or whether it does not have legal access. If legal access is via a recorded easement, recording information shall be provided. If a property does not have legal access, this shall be clearly stated.

• Physical access shall be clearly described. (ex. “Paved public two lane road”, or “one lane dirt logging road accessible by 4X4 but not cleared during the winter”.)

d. Improvements. A listing of significant improvements will be provided by the Forest Service. The impact of these features should be considered in the analysis. If during the course of property inspections, other significant improvements are observed by the appraiser, these shall be brought to the attention of the assigned review appraiser.

e. Fixtures.

f. Use History. A 10-year history is required.

g. Sales History. Include a 10-year record of all sales of the appraised property and, if the information is available, offers to buy or sell. If no sale has occurred in the past 10 years, the appraiser shall report the last sale of the property, irrespective of date.

h. Rental History. A 3-year rental history is required. An unsupported statement that the rent does not represent market or economic rent is unacceptable.

i. Assessed Value and Annual Tax Load.

j. Zoning and Other Land-use Restrictions. Federal lands must be appraised under the hypothetical condition that they are already in non-Federal ownership and zoned consistent with similar non-Federal properties in the market area. The contract appraiser shall 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.

Zoning/Land Use/Regulations should include factual information regarding zoning and regulations which impact the legal uses of the subject property and should include an analysis of these requirements as applied to the subject. The uses permitted by zoning must often be evaluated with reference to land development regulations for access, septic percolation requirements, etc. The appraisal should include a conclusion as to the legally permitted uses, type of units, and legally permitted number of units (or density/intensity) which could conceivably be developed on the property.

k. 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.

Part III - Data Analysis And Conclusions.

1. Analysis of Highest and Best Use. For acquisition appraisals, UASFLA defines highest and best use as “The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future.”

Highest and Best Use requires a conclusion as if vacant and as improved. The highest and best use as if vacant and as improved are different analyses, and both should include a complete discussion of the legally permissible uses, physically possible uses, financially feasible uses and that use (or those uses) which produce the greatest return to the land. An opinion of highest and best use of development requires support from the market.

The UASFLA requires the contract appraiser to make a larger parcel determination in all appraisals. Apply the tests provided in UASFLA to determine the larger parcel(s).

The highest and best use conclusion must be clearly supported by market evidence. Sale or exchange to the United States or other public entity is not an acceptable highest and best use. The use to which the Government will put the property after it has been acquired is, as a general rule, an improper highest and best use. A non-economic highest and best use, such as “conservation,” “natural lands,” “preservation,” or any use that requires the property to be withheld from economic production in perpetuity, is not a valid use upon which to base an estimate of market value.

If the highest and best use is for assemblage, describe and explain the relationship of the appraised property to the property to which it would be joined.

If speculation or investment is the highest and best use of the property, describe and explain its interim and most probable ultimate use.

When there is a claim that the highest and best use of a property is something other than the property’s existing use, the burden of proof is on the contract appraiser.

Market value cannot be predicated upon potential uses that are speculative and conjectural.

The contract appraiser's opinion of a reasonable probability of a zoning change must have a factual foundation. The appraisal report shall include a description of the investigation undertaken to determine the probability of rezoning. The investigation shall include thorough research of the use(s) and zoning of properties situated similarly to the subject property within the area covered by the zoning authority. The stated rezoning conclusion shall be supported by facts surfaced in the research. A property cannot be valued as if it were already rezoned for a different use. The property must be valued only in light of the probability of obtaining a zoning change.

2. 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 by the use of confirmed sales of comparable, or nearly comparable, lands having like optimum uses is the preferred method.

If the contract appraiser will place considerable weight on the cost approach to value in reaching a final value estimate, consideration should be given to retaining the services of a contractor or professional cost estimator to assist in developing the reproduction or replacement cost estimate.

Estimating depreciation by the use of published tables or age-life computation shall be avoided. The contract appraiser must substantiate that it is not possible to abstract depreciation rates from the market if tables or age-life methodologies are used to compute depreciation. If this is the only method used, the weakness resulting from the lack of market support is to be addressed and considered in the reconciliation.

3. Value Estimate by the Sales Comparison Approach. Nearby arm’s length transactions, comparable to the land under appraisement, and reasonably current, are the best evidence of market value. The Federal courts recognize the sales comparison approach as being normally the best evidence of market value.

Analyze the last sale of the subject property if relevant. If not used, explain why. An unsupported claim that a sale of the subject property was a forced sale, or is not indicative of its current value, is unacceptable.

When supportable by market evidence, the use of quantified adjustments is preferred. Quantitative adjustments must have quantitative support and may be in the form of sale/resale, paired sales, statistical analysis relevant to the local market and property type. Percentage and dollar adjustments may, and often should, be combined. Resort to qualitative adjustments when there is inadequate market data to support quantitative adjustments. Factors that cannot be quantified are dealt with in qualitative analysis. When quantitative and qualitative adjustments are both used in the adjustment process, all quantitative adjustments should be made first. An analysis which incorporates both quantitative adjustments and qualitative analysis or only qualitative analysis when there is a lack of market support for quantitative adjustments is permitted.

Include a sales adjustment chart summarizing all of the adjustments and showing the final adjusted sale prices and how the sales compare with the subject property.

The documentation of each comparable sale shall include:

a. Recording Information and Instrument

b. Parties to the transaction.

c. Date of transaction.

d. Confirmation of the transaction: Confirm the transaction with the buyer, seller, broker, or other person having knowledge of the price, terms, and conditions of sale. Provide name of person verifying transaction and relationship to transaction, date of verification, and name of appraiser who confirmed transaction.

e. Buyer motivation.

f. Location: Provide location with reference to street/road and closes cross street similar to that provided for the subject property.

g. Access: Describe legal and physical access similar to that provided for the subject property.

h. Size.

i. Legal description.

j. Property rights conveyed. State the exceptions of title for the sale. Do not just state typical outstanding rights.

k. Consideration.

l. Financing terms.

m. Sale conditions. Verify if the sale was an arm’s length or distressed sale.

n. Improvements.

o. Physical description. Describe topography, vegetative cover, water influence, and other characteristics. Describe legal and physical access.

p. Non-realty items.

q. Economic characteristics.

r. Zoning and/or land use regulations.

s. Current use.

t. Highest and best use.

u. Topographic map.

v. Aerial map.

w. Photographs. Include pictures of the road frontage/access, typical attributes and a picture of any improvements if possible (as applicable). Include a brief description, the date taken and by whom. Two to four pictures of the comparable sales should be included.

x. Date of inspection

y. Exhibits (Plat, aerial map, topo map, etc. please note there is no deed to include the deed)

In order to make meaningful comparisons between the sales and the appraised property, the Forest Service requires inspection of all sales directly compared with the appraised property. Unusual circumstances that preclude on-the-ground inspection or make inspection unreasonably difficult shall be discussed with the assigned COR and/or Contracting Officer prior to completion of the appraisal report. Waiver of the comparable sale inspection requirement must be made in writing by the assigned COR and/or Contracting Officer in the form of a supplemental appraisal instruction. There shall be no waiver of the requirement for inspection of the appraised property.

Include a list of the sales considered, but not actually used, in the addenda. Cite pertinent facts such as date, size, buyer and seller, price, terms, location, and explain why each sale was not used.

The contract appraiser shall adhere to UASFLA direction pertaining to comparable sales requiring extraordinary verification and weighting considerations. These include sales to governmental agencies, sales to environmental organizations, sales to parties desiring to exchange the land to the government, distressed sales, and other atypical or non-arm’s length sales.

4. The Income Capitalization Approach. All data shall be market supported. Discount rates/cap rates require support. Surveys, built up method, etc. are permitted as support for selected rates. Primary support for selected rates should be from an analysis of market data.

5. The Development Approach. The development approach should not be relied upon as the primary indicator of value when comparable sales are available with which to accurately estimate the property’s market value. The contract appraiser shall adhere to UASFLA direction pertaining to this highly sensitive and complex method of valuation.

6. Correlation and Final Conclusion of Market Value. The contract appraiser must avoid making a summation appraisal.

Appraisers are responsible for the final opinion of value even if it relies upon estimates developed by others (such as, timber cruisers, mineral appraisers, or cost estimators).

Part IV - Exhibits and Addenda.

Include the following items as applicable to the appraisal problem if not included in the body of the report:

1. Maps. Maps shall clearly identify the properties and be of sufficient quality to enable the staff review appraiser to locate the properties on the ground. Maps shall be dated, include a legend, scale, and north arrow. The report shall contain original maps or vivid color copies.

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

b. Neighborhood Map. This map shows the appraised property and its immediate neighborhood.

c. Tract Map or Plat. This map generally is a large-scale (1:24000) United States Geological Survey (USGS) or similar quality map that shows the appraised property and pertinent physical features such as roads, streams, and improvements. If portions of the appraised property are assigned separate values, such as in an assembled exchange, these areas shall be delineated on this map, or a separate map.

d. Comparable Sales Location Map. This map shall show the location of the appraised property and the sales. Delineate the boundaries of the appraised properties and comparable sales when the map is of sufficient scale to be meaningful. If all pertinent comparable sales cannot be shown on the same map as the appraised property, a smaller-scale map (such as a state road map) may be included in addition to the larger scale map.

2. Sale Transaction Forms. Include a completed form showing all information for each comparable transaction used in the appraisal. Include a plat (if available), a USGS topographic map (if appropriate), and multiple, color photo(s) of each sale. Photos should include typical attributes of the property including access and any water attributes. The transaction number must match the number of the transaction listed in the report.

3. Legal Description. Include a full legal description of the property appraised if not shown in the narrative section of the report.

4. Title Information. Include a copy of the preliminary title report for the non-Federal land and a statement of interest (status report) for the Federal land, as applicable.

5. Photographs. Provide quality color photographs of the appraised property and all comparables in the original and all copies of the final report.