WEN.307 - APPRAISAL SPECIFICATIONS.pdf

1 | P a g e

Appraisal Specifications for Real Property Evergreen – SNO.167 | 9/10/2021

APPRAISAL SPECIFICATIONS

FOR

WLT – Evergreen (SNO.167/MTB.217) Technical Specifications

These technical specifications reflect the requirements, standards, and guidelines for the appraisal of property to be acquired or conveyed by the Forest Service.

Appraisal Report The Contract Appraiser will make a detailed field inspection and identification of the subject property as identified herein and conduct as many investigations and studies as necessary to derive sound conclusions and to prepare the appraisal report.

Date of Value The Contract Appraiser may be provided a pre-determined date of value for the entire project; otherwise, the date of the value opinion shall be the last date the Contract Appraiser inspected the appraised property.

Examination Notice The Contract Appraiser will provide the landowner and the Forest Service advanced notice of the examination date and shall give the landowner, or the designated representative, and the Forest Service an opportunity to accompany the appraiser during the inspection of the property. These notices shall be documented in the appraiser’s transmittal letter of the appraisal report. The Contract Appraiser shall certify that they have personally visited the appraised property and all of the comparable transactions used in the comparative analyses.

Definition of Terms Unless specifically defined herein or in UASFLA or USPAP, definitions of all terms are the same as those found in The Dictionary of Real Estate Appraisal (Appraisal Institute), 6th Edition. UASFLA shall take precedence followed by USPAP in any differences among definitions.

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 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

2 | P a g e reports shall be prepared in compliance with UASFLA standards and Forest Service appraisal instructions provided by the assigned staff review appraiser.

Special Instructions If during your analysis you discover the subject property has two, or more, different and distinct highest and best uses, you are to confer with the review appraiser before proceeding further with your analysis.

The value conclusion should be stated as a unit value (dollars per acre in most cases) and a total property value. The report should also state the range of units (acreage in most cases) within which the unit of value would be valid. The property may subsequently be surveyed. The total property value may be established in a supplemental review after the final size is determined.

Access Comments The title commitment does not insure against loss or damage by reason of a lack of a right of access to and from the Land.

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

As the appraiser, you must assess the probability of obtaining legal access and how the market considers similar properties. You may not merely assume the access can be obtained. After the appraisal contract is awarded, a National Forest employee will be available to describe the process a landowner could pursue to obtain permitted access across National Forest System Lands.

Larger Parcel 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 assigned staff review appraiser for possible additional direction.

Unit Rule One aspect of the UASFLA that the Contract Appraiser should be aware of is the “unit rule.”

A principle developed by the federal courts that dictates what is to be value for just compensation. Under the unit rule, the property being appraised must be valued as a unitary whole in single ownership. The value of the whole cannot be derived by adding together the separate values of various interests or components. As a result, summation or cumulative appraisals are improper under federal law. The unit rule relates to ownership interests (estates) in real estate and to various physical components of real estate (such as timber, mineral deposits, farmland, and buildings). See UASFLA 2016 for more details.

3 | P a g e

UASFLA and USPAP Conflicts Conflicts between UASFLA and USPAP are minimal. When there is conflict, UASFLA takes precedence. It may be necessary to use the Jurisdictional Exception Rule to USPAP to meet certain standards of the UASFLA. Invocation of the Jurisdictional Exception Rule should never be used 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 UASFLA, USPAP, Forest Service Policy, and these specifications. Any findings of deficiency shall be discussed, and corrections requested by the review appraiser. A value opinion is acceptable for use only after the assigned review appraiser has approved the appraisal report (FSM 5411).

Confidentiality Federal appraisals are subject to disclosure under the Freedom of Information Act (FIOA).

Under certain circumstances appraisals or appraisal related information may be withheld under Exemption 4 or Exemption 5 of FOIA; however, in order to protect confidential information or disclosure of information which may cause the appraiser competitive harm, confidential information shall not be included within the written appraisal report. While it may be common practice for appraisers to report they relied upon confidential information (such as information learned in the conduct of other appraisals, or information provided to the appraiser by market participants on the condition that it not be disclosed) in addition to the supporting data reported, in developing their opinion of value such a reference may be subject to a FOIA release. If confidential information is used in the analysis, it shall be reported under separate cover, marked as confidential, and delivered to the Federal Review Appraiser. Once the Review is complete, the information will be destroyed or returned to the appraiser and not included in the Forest Service official record. The appraisal report shall only include a summary without disclosing confidential information.

Prior to the review appraiser’s acceptance of the appraisal report, the appraiser may provide information about the assignment, appraisal results, or portions thereof only to the Forest Service Review Appraiser or the Forest Service Regional Appraiser. Appraisal reports may only be provided to the assigned Forest Service Review Appraiser or the Forest Service Regional Appraiser. The Forest Service Regional Appraiser will control any subsequent distribution of the nonfederal appraisal report, summaries, or review report after a technical review is completed. The appraiser may not share assignment results to anyone other than the client or review appraiser without written authorization from the Forest Service Region 6 Director of Lands.

4 | P a g e

Format The report shall be computer generated and printed on paper sized 8 1/2 by 11 inches with all parts of the report legible and shall be bound with a durable cover. The face of the report shall be labeled using the case name from the Statement of Work to identify the appraised property, list the contract number, the contract appraiser's name and address, and the effective date of the value opinion appraisal. All pages of the report, including the exhibits, shall be numbered.

Contents The following is a recommended appraisal report format that generally follows the UASFLA format in Appendix B. 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 appraiser to read, understand, and comply with UASFLA and these specifications.

PART 1 - INTRODUCTION

1. Title Page.

2. Letter of Transmittal.

3. Table of Contents. List the topic headings in numerical order with corresponding page numbers.

4. Appraiser's Certification. The appraisal report shall include an appraiser’s signed certification statement that is consistent with the certification requirements of USPAP Standard 2. In addition, the following statements related to these Standards must be included, and are found at UASFLA 2.3.1.4:

“The appraisal was developed and the appraisal report prepared in conformity with the Uniform Appraisal Standards for Federal Land Acquisitions; and”

“The appraisal was developed and the appraisal report prepared in conformance with the Appraisal Standards Board’s Uniform Standards of Professional Appraisal Practice and complies with USPAP’s Jurisdictional Exception Rule when invoked by Section 1.2.7.2 of the Uniform Appraisal Standards for Federal Land Acquisitions; and”

"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 ___________________; and” (If more than one person signs the report, this certification must clearly specify which individuals

5 | P a g e did and which individuals did not make a personal inspection of the appraised property.

The appraiser must inspect the appraised property.)

"That the property owner; or (his)(her) designated representative, was given the opportunity to accompany the appraiser on the property inspection; and”

"In my opinion, the market value is $ __________________, in terms of cash, as of (date).

By (Appraiser’s signature) Printed State General Certification No.

5. Executive Summary. The appraiser shall report the major facts and conclusions that led to the final opinions(s) of value. This summary should include an identification of the property appraised; the highest and best use of the property; brief description of improvements; the indicated value of the property by each approach to value employed;

the final opinion of value; any hypothetical conditions, extraordinary assumptions, limiting conditions, or instructions; and the effective date of the appraisal.

6. Photographs of Subject. Provide original color photographs or high-quality color copies of photographs of the appraised property. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property 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 property of the United States and may be used for any legal and proper purpose. Therefore, a condition that limits the distribution of the report is not permitted.

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.

6 | P a g e

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

8. Description of Scope of Work. The appraiser shall use this section of the report to identify the seven critical elements that defined the appraisal problem to be solved:

• Client

• Intended Users

• Intended Use

• Definition of value

• Effective date

• Property characteristics

• Assignment conditions

This section shall include an explanation of the property rights appraised. The appraiser should describe the investigation and analysis that was undertaken in developing the appraisal. The geographical area and time span searched for market data should be included, as should a description of the type of market data researched and extent of market data confirmation. The appraiser should state the references and data sources relied upon in developing the appraisal.

The applicability of all approaches to value shall be discussed and the exclusion of any approach to value shall be explained.

For acquisition appraisals, use the following definition: “Market value is the amount in cash, or terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of value, 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.” (Uniform Appraisal Standards for Federal Land Acquisitions, 2016, page 10, 1.2.4)

This definition makes no linkage between the estimated market value and exposure time. A specific exposure time shall not be cited in an appraisal report prepared under UASFLA standards. Utilize the Jurisdictional Exception Rule to avoid a violation of USPAP standards, which require a specific exposure time.

9. The Purpose of the Appraisal.

The purpose of the appraisal is to provide an opinion of the market value (as defined in UASFLA 1.2.4) of the described property. See Statement of Work for specific project information.

7 | P a g e

PART II – FACTUAL DATA

1. Legal Description. The legal description is provided to the appraiser in the appraisal assignment. If a lengthy description would disrupt the narrative flow, it may be placed in the addenda and referenced in the text.

2. 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.

(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.

3. Property Rights.

The estate to be appraised is all the rights, title, and interest of The Wilderness Land Trust, a Colorado nonprofit corporation in and to 346.002 acres of land, with no reservations, and (no known) or outstanding rights as described in the ALTA Commitment for Tile Insurance dated 9/12/2019 from Fidelity National Title.

4. Identify the property rights to be appraised as instructed. List all reservations, outstanding rights, and other encumbrances. For multiple parcel properties, list by appraised parcel. If investigation reveals differences from property rights cited in the assignment, confer with the review appraiser. Discuss the effect on value of identified reservations, outstanding rights, and other encumbrances.

5. Property Data. Include the following:

a) Site Description. As relevant, describe the present use, accessibility and road frontage, topography and elevation, soils, vegetation (including timber), views, land area size, land shape, utilities, mineral deposits, water rights associated with the property, relevant easements, wetlands, floodplains, and other characteristics that may affect value. Also discuss the beneficial and detrimental factors inherent in the location of the property. The presence of hazardous substances should be addressed. An affirmative statement is required if the property is located within a flood hazard area. A statement must be made concerning the existence or absence of mineral deposits having a commercial value.

8 | P a g e

b) Improvements.

c) Fixtures.

d) Use History. State brief history of the use of the property as improved. If improved, state the purpose for which the improvements were designed and the dates of original construction and major renovations, additions, and/or conversions.

Include a 10-year history of the use and occupancy of the property. If any of the forgoing information is indeterminable, the appraiser must report that fact.

e) 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 the subject property. If no sale has occurred in the past 10 years, the appraiser shall report the last sale of the property, irrespective of date.

f) Rental History. A 3-year rental history is required.

g) Assessed Value and Annual Tax Load. Include analysis of tax rates (stable, increasing, decreasing.)

h) Zoning and Other Land-Use Restrictions. The 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.

PART III - ANALYSIS & CONCLUSIONS

1. Highest and Best Use. UASFLA 1.4.4 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.” The appraiser’s determination of highest and best use is one of the most important elements of the entire appraisal process.

Appraisers must clearly support the highest and best use conclusion in the appraisal report. The highest and best use of the land, as if vacant, is addressed first. If the land is improved, the highest and best use of the property, as improved, is then addressed.

a. Four Tests – The four tests of highest and best use are physically possible, legally permissible, financially feasible, and must result in the highest value.

Each of these four criteria must be addressed in the appraisal report. The level of supporting data and analysis presented in the report for each criteria will depend in part on the complexity of the appraisal problem. A property’s highest and best use will ordinarily be existing use, as an owner will

9 | P a g e normally put property to its maximum (highest value) use. A determination that the property has a different highest and best use than its existing use requires evidence that the property is physically and legally adaptable for that use and there is a market demand for that use in the reasonably near future.

The appraiser should discuss the use of the property as if vacant, which results in the highest value, and the analysis that supports that conclusion.

The appraiser should identify the timing of the use and the likely purchaser and user.

If the property contains improvements, the appraiser must address the highest and best use as improved. The same process described above should be followed. This analysis is focused on the contribution of the improvements to the property overall, taking into account the highest and best use of the property as if vacant. After addressing each of the four tests and making a determination of the highest and best use as improved, the appraiser should identify the timing of the use and the likely purchaser and user.

b. Larger Parcel -The UASFLA requires the appraiser to make a larger parcel determination in all appraisals. The appraiser must describe the factual basis and analysis underlying the conclusion of the larger parcel analysis. The three tests developed under larger parcel analysis (unity of highest and best use, unity of title, and contiguity) must be reported in sufficient detail for the client and intended users to fully understand the factual and analytical basis for the conclusion.

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.

Appraisals in federal acquisitions cannot be based on noneconomic or nonmarket uses. To be an economic use, the use must contribute to the property’s actual market value, and there must be competitive supply and demand for that use in the private market.

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.

A highest and best use must be reasonably probable. Elements affecting value that depend upon events or combination of occurrences which while within the realm of possibility, are not fairly shown to be reasonably probable, should be excluded from consideration.

The 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

10 | P a g e 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. Land Valuation. The appraiser shall report the opinion of value of the land for its highest and best use as if vacant and available for such use. See UASFLA Sections

1.5.1 and 4.4.2 for a detailed discussion concerning the approaches to value and legal foundation for these standards. In all assignments, the sales comparison approach is the preferred valuation approach for forming an opinion of market value of the land as if vacant. However, in some assignments the subdivision development method may be appropriate.

a. Sales Comparison Approach. In reporting the results of the sales comparison approach for land valuation, the appraiser shall provide sufficient detailed description of confirmed sales of lands that have the same or similar highest and best use as the subject property. Differences between the comparable sales and the subject property shall be considered and adjustments made to the sales to address these differences. Items of comparison shall include property rights conveyed, financing terms, conditions of sale, market conditions, location, physical characteristics, economic characteristics, legal characteristics and non-realty components of value. The adjustments must be summarized in an adjustment grid and each adjustment (whether qualitative or quantitative) should be supported with market data.

b. Subdivision Development Method. In those circumstances where the property has a highest and best use for subdivision purposes and the appraiser has developed the subdivision method, the report must address all of the factors and assumptions used in sufficient detail for the client and intended users to understand the outcome of this method. The market support for each factor (lot sale price, absorption rate, development costs, expenses, time lag, and discount rate) used in this analysis must be clearly presented in the report.

The discount cash flow analysis prepared as part of this analysis must be included in the report

3. Cost Approach. This portion of the report should be in the form of computational data, arranged in sequence, beginning with reproduction or replacement cost. The report should state the source of all figures used. If the Appraiser retained the services of a contractor or professional cost estimator to assist in the developing the reproduction or replacement cost estimate, this data should be referenced and the estimator’s report included in the addenda of the appraisal report. See UASFLA Section 1.5.3 for a discussion concerning the preferred methods of estimating depreciation.

11 | P a g e

4. 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. Each appraisal report must contain a sufficient description of the comparable sales used so that it is possible for the reader to understand the conclusion drawn by the appraiser from the comparable sales data.

Prior sales of the same property, if unforced, arm’s-length, for cash or its equivalent and reasonably recent to the date of valuation, are extremely probative evidence of market value. Accordingly, the appraiser must determine what the owner paid for the property being appraised. Prior sales of the same property are not categorically entitled to more weight than sales of other comparable properties. Relative importance of each must be analyzed under particular facts of the appraisal assignment. An unsupported claim that a sale of the subject property did not represent market value or was not an arm’s-length transaction is not sufficient.

When supportable by market evidence, the use of quantified adjustments is preferred. Percentage and dollar adjustments may, and often should, be combined.

Resort to qualitative adjustments only 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.

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

The documentation of each comparable sale in the addenda on a comparable sales form, which shall include:

a) Parties to the transaction.

b) Date of transaction.

c) Legal Description.

d) Type of sale instrument.

e) Document recording information.

f) Price

g) Terms of the sale

h) Confirmation of the transaction. Confirm the transaction with the buyer, seller, broker, or other person having knowledge of the price, terms, and conditions of the sale.

i) Buyer motivation.

j) Sale conditions. Verify if the lease was an arm’s length or distressed.

k) Location. Include enough information to locate the sold property in the field.

l) Zoning.

12 | P a g e

m) Present Use.

n) Highest and best use.

o) Briefly describe the physical characteristics of the property including size, topography, vegetative cover, improvements, water influence, and other relevant characteristics.

p) Plot plan, sketch or topo map of the property.

q) Date of inspection and by who.

r) Photographs showing the date taken and name of the person taking the photograph.

s) Non-realty items.

t) Economic characteristics.

A sale map showing the relative location of the comparable sale to the subject property shall be included in the addenda of the report. Inclusion of a copy of the transfer document (e.g., deed, contract) in the report is neither required nor desirable, unless there is something in the document that is unusual or particularly revealing.

In order to make meaningful comparisons between the sales and the appraised property the USDA 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 review appraiser prior to completion of the appraisal report. Waiver of the comparable sales inspection requirement must be made in writing by the assigned review appraiser in the form of a supplemental appraiser 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 lease date, grantor and grantee, size, price, terms, location, and explain why each sale was not used.

The 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.

In developing a final opinion of value by the sales comparison approach, the appraiser shall explain the comparative weight given to each comparable sale, no matter whether quantitative or qualitative adjustments or a combination thereof are used. A comparative adjustment chart or graph is required.

13 | P a g e

5. The Income Capitalization Approach. All data shall be market supported. The appraisal shall include adequate factual data to support each figure and factor used and should be arranged in detailed form.

6. Reconciliation and Final Opinion of Market Value. The appraiser must explain the reasoning applied to arrive at the final opinion of value and how the results of each approach to value were weighted in that opinion, and the reliability of each approach to value for solving the particular appraisal problem. The appraiser must avoid making a summation appraisal.

The appraiser is solely responsible for the final opinion of value. In using supporting experts' opinions and reports, the appraiser cannot merely accept such consultant reports as accurate, but rather must analyze such reports and adopt them only if reasonable and adequately documented and supported. The reasonableness of subsidiary estimates must be confirmed in accordance with UASFLA Section 1.13.

The results of secondary valuation reports (minerals, fixtures, 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 would violate 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.

14 | P a g e

PART IV - EXHIBITS & ADDENDA

Appraisal Assignment Package: The Appraisal Statement of Work must be included by attachment in the addenda of the appraisal report. All other supplied exhibits and/or appendices by the Forest Service may be included as the Contract Appraiser feels necessary to produce a credible report that is not misleading.

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 review appraiser to locate the properties on the ground. Maps shall be dated, include a legend, scale, and north arrow. The original copy of the report shall contain original maps or vivid color copies.

a) Area Map - 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 is a large-scale (2-inch/mile) 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 separated 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 color photo(s) of each sale. 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.

15 | P a g e

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. Photographs may be a separate exhibit in the addenda or included with the narrative description of the appraised property and comparable sales. Show the following information with photographs:

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.

6. Other Pertinent Exhibits. Present any additional data such as documents and charts pertinent to the valuation and referred to in the body of the appraisal. It may include:

a) A copy of the easement or other deed.

b) A copy of technical reports from specialists. This may include a timber cruise summary signed by a timber cruiser, a road plan signed by an engineer, a mineral report signed by a geologist, and a hazardous materials report.

c) Property owner permission to appraise.

7. References. List sources of data, including documents and individuals.

8. Qualifications of the Appraiser. Include the qualifications of all contract appraisers or technicians who made significant contributions to the completion of the appraisal assignment. The contract appraiser(s) must provide evidence of compliance with the certification requirements of the state(s) where the properties are located.

16 | P a g e

Updating of Report

Supplements or amendments to the appraisal reports, such as for updating the value opinion to a new, change in acreage, additional support or explanation, or to correct a previous appraisal report, shall be referenced for incorporation with the original report.

The updated report shall be submitted in original and one copy and shall include sale data or other evidence to substantiate the updated conclusions of value. The following format is recommended. All items must be addressed.

1. Title Page. Include the same information as in the original appraisal report. Label the report as a “Supplemental” or “Updated” appraisal report.

2. Summary of Facts. Include (a) owner’s name or other identification of the property, (b) size, (c) highest and best use, (d) new opinion of value, and (e) new valuation date.

3. Summary of Original Appraisal. Cite the date and value opinion from the original appraisal. If previous updates have been made since the original appraisal, cite value opinions and value dates from all updates as well as the original appraisal.

4. Changes. Explain the reason for the appraisal supplement; such as, to update an opinion of value, amend a previous appraisal report, add additional support or explanation, or other.

5. New Opinion of Value. Discuss the changes and market activity that have occurred since the original appraisal (or previous update). Discuss the method used to update the opinion of value and cite the evidence and/or analysis of trends that support the updated value opinion. Conclude with a statement of the new opinion of value and valuation date, followed by the appraiser’s signature.

6. Certification.

7. Addenda. Include sales data detail for new sales cited, summaries of data and trend analyses, maps of sales analyzed, and any other information relied upon but not included in the text.

8. Binding. If the Supplemental Appraisal Report comprises more than four pages, it shall be bound in a durable report cover with appropriate identification.