Attachment G - Appraisal - Sample PWS - Dayton - 12.09.25.pdf

ATTACHMENT G:

SAMPLE PERFORMANCE WORK STATEMENT – PROPERTY APPRAISAL / VALUATION

1. Background The U. S. Department of Veterans Affairs (“VA”) intends to Enhanced-Use Lease (EUL) [insert specifics of building(s)] building situated on approximately [# of acres] acres of land located at [Address], for use as [EUL function]. The site has been identified and its boundaries are approximated on Appendix A to this PWS (“Site”).

2. Property to Be Valued

[INSERT BUILDING NUMBER / NAME / PARCEL]. See Appendix A

3. Required Standards and Minimum Appraiser Qualifications A state-licensed, MAI certified appraiser shall prepare and deliver a complete, self-contained narrative appraisal report in accordance with the Code of Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP, latest ed.). The appraiser shall also conform to the Uniform Appraisal Standards for Federal Land Acquisitions (also referred to as the Yellow Book) and shall adhere to the application of standard approaches to real property value;

namely the cost, income, and market comparable approaches. The application of the approaches to value is dependent upon the appraisal problem involved and the appraiser’s professional judgment; however, deviation from normal practices, methods and techniques are to be noted and fully supported by comment and justification.

The appraiser shall have no direct or indirect interest, financial or otherwise, in the property or the transaction, and shall disclose in their proposal any prior experience or potential conflict of interest with the engagement or parties thereto.

4. Valuation:

The appraiser will estimate fair market fee-simple value and fair market annual ground rent for the subject property. The property shall be appraised as “clean” (for the purposes of this appraisal defined as ”no known environmental contamination”).

“Fair Market Value” (FMV) is defined as the most probable price that a property would bring in a competitive and open market, with the buyer and seller acting knowledgeably and prudently in their best interests, without undue stimulus. The price must also represent the normal consideration for the property, unaffected by creative financing or sale concessions.

“Highest and Best Use” is defined as the use of vacant land or an improved property, which is (i) reasonably probable, (ii) legally permissible, (iii) physically possible, (iv) appropriately supported, (v) financially feasible, and (vi) that results in the highest value consistent with criteria (i-v).

“Legally Permissible” As a Federal enclave, the VA campus is not subject to local zoning. Therefore, the appraiser should make an extraordinary assumption regarding the legally permissible criteria based on the existing legislation allowing for an EUL. The proposed use is legally permissible under the current EUL legislation. The proposed use for the subject property is: [INSERT].

5. Deliverables and Schedule: The appraiser shall prepare the appraisal in conformance with USPAP guidelines. Provide one (1) draft electronic copy of the appraisal for client and government’s review and approval within 30 business days of notice to proceed, and one final copy as a PDF file, no later than 10 business days after the client approves the draft reports.

6. Format and Content The appraisal will be performed in narrative form and shall include all essential data to disclose the purpose of the appraisal, the scope of the appraisal problem, the principal methods and reasoning process employed, and all available pertinent supporting data to sustain the appraiser’s final

SAMPLE PERFORMANCE WORK STATEMENT – PROPERTY APPRAISAL / VALUATION

conclusion as to value. Items such as photographs, sketches, charts, and exhibits, etc. are considered integral parts of the appraisal report.

It should be understood that the appraisal report will be subject to careful review; therefore the report must be fully detailed with all items substantiated and justified by appropriate information and data, so that reviewers will find validity in the appraiser’s conclusions. Any deficiencies, that, in the reviewer’s opinion, require further substantiation, and or work, must be performed as a supplement to the reviewer’s satisfaction, at the appraiser’s expense. The appraisal report is an important document that will serve as a material aid in negotiations. It is therefore essential that the appraisal’s content reveal that the appraiser has made an adequate study and analyses of the appraisal problem and has considered all available, pertinent and reliable data and that sound, logical reasoning is used in developing value conclusions.

The complete, self-contained appraisal report shall contain, but is not limited to, the following information:

a. The total square footage and existing condition of buildings and or land to include any known environmental conditions.

b. Improvements (“as is” and “clean”) made to the land and not scheduled for demolition, if any.

c. Information regarding local market conditions

d. Information regarding land use and special zoning districts.

e. Historic significance of buildings and or land.

f. Market assessment to include Highest and Best Use.

g. Data analysis, including sales, cost and market rent approaches, as relevant.

h. Land residual value analysis and Ground Rent Capitalization analysis.

i. Current FMV of the fee simple title

j. Current FMV of the 99-year leased fee estate

k. Current FMR (Fair Market Rent) for 99-year Enhanced-Use Lease (ground lease)

l. The market ground rent shall be estimated by applying a market capitalization rate to the market value of the underlying land. Appraiser shall make the appropriate statements regarding yields and other conclusions based upon best practices for estimating values within the local real estate market. If such comparable leases do not exist in the local real estate market, the appraiser should make the appropriate statements and extrapolate values using factors applicable to the proposed project, calculating values projecting or extending known information for the lease term.

m. In addition to the sales approach and market rent comparison, the appraisal shall include the cost approach and land residual method, taking into consideration the Land component accounting for appreciation;

n. All information necessary and pertinent to substantiate the appraisal.

SAMPLE PERFORMANCE WORK STATEMENT – PROPERTY APPRAISAL / VALUATION

Appendix A

GENERAL SITE BOUNDARIES FOR EUL SITE

[INSERT MAP]