This portion of the report is considered a new appraisal. Some of the data previously used may be utilized in the valuation of the remainder after property. The appraiser should explain any changes in the character of the subject. This applies to changes in the site, improvement, and highest and best use analyses in the remainder after the acquisition. In the appraisal of the remainder after the acquisition, the appraiser will be faced with possible damages and/or “cost to cure.” The matter of whether damage is compensable or non-compensable is a legal matter rather than an appraisal issue. If there is a question regarding compensability, ROW PD should be contacted.

NOTE: Enter the actual page number you have assigned to the TxDOT multiple-use page for each approach developed. All supporting documentation should follow each promulgated page and be numbered sequentially using the structured page numbering system (Pages 5.1, 5.2, etc).

The comparable sales must be adjusted to the subject remainder after property. Use one word to describe the characteristic of the comparable followed by plus (+) or minus (-) and the adjustment amount. All adjustments of comparable sales must be made either on a dollar or percentage basis. The Indicated Unit Value is the culmination of the adjustments to each sale. Adjustments for physical characteristics should be made in a composite format.

In developing the cost approach, the appraiser will use the SCA page to develop and support the vacant land value of the remainder after. The use of the SCA page in the cost approach will require the appraiser to checkmark the “Remainder After” and “Land” boxes at the top of this page.

The remainder after comparables should be thoroughly screened before using them in this grid. It is suggested that at least three comparables be utilized in developing the valuation grid. A full explanation is appropriate when fewer sales are utilized.

All characteristics dissimilar to the subject should be noted on the form and explained in the discussion portion of the report. A lengthy explanation is not required; however, the appraiser should explain the basis for the adjustment. If there is a question of comparability due to large adjustments, the appraiser should fully explain the reasoning for the use of that comparable. The explanation of the appraiser’s reasoning for the various elements of adjustment must be in sufficient detail to allow the reviewing appraiser to make a sound judgment as to the validity and acceptability of the appraiser’s adjustments. A reconciliation of the sales to an indicated value must be given. The appraiser will conclude the reconciliation explanation with a mathematical calculation. The estimated value is a reconciliation of the indicated unit values of the comparable sales.

Form : At the top of this form, the appraiser should designate that this is a comparable

land

sale. This form is used to describe the essential facts regarding each comparable transaction. A color photograph clearly depicting the comparable is required. The appraiser and reviewing appraiser must personally inspect each comparable. The appraiser must verify all sales information, and identify the person with whom the sale information was verified. Information about each transaction must include the names of the grantor and grantee, total land area, current use, intended use, zoning, consideration paid, financing, and conditions of sale. A statement by the appraiser to the effect that the financing of the comparable sale did not affect its validity as a market value indicator is acceptable. If, however, the validity of the sale is affected by the financing, then an explanation is required of the effects of the financing on the sale as a market value indicator. For additional information, the appraiser may attach another sheet to this form. All spaces must be considered and any not applicable should be marked as N/A.

This table is designed to document the individual improvements on the remainder after land. The space within the table denoting main building is designed to reflect the most prominent improvement on the remainder after. The remaining accessory improvements should include buildings that continue to function. Site improvements with contributory value should be itemized in the area provided.

The contributory value of all improvements is the summation of the depreciated value of the buildings, accessory, and site improvements. If there is NO contributory value of an improvement(s) because of the state’s acquisition, this should be fully explained (proximity, bisected improvement, loss of use, etc). The remainder after land value as derived on the SCA page should be added to the contributory value of all improvements to arrive at the estimated value by the Cost Approach.

The specific sources of cost data will be shown, including volume and page numbers if appropriate. The depreciation factors and any obsolescence should be adequately documented, supported, and explained. Each type of depreciation or obsolescence must include discussion of the appraiser’s reasoning. The discussion should be in sufficient detail to allow a review appraiser to make a sound judgment regarding its validity and acceptability.

If there is a reduction in value, that reduction must be explained and supported by market information, if applicable.

All supporting documentation should follow each promulgated page and be numbered sequentially using the structured page numbering system.

The comparable improved sales must be adjusted to the remainder after property. Use one word to describe the characteristic of the comparable followed by plus (+) or minus (-) and the adjustment amount. All adjustments of comparable sales must be made either on a dollar or percentage basis. The Indicated Unit Value is the culmination of the adjustments to each sale. Adjustments for physical characteristics should be made in a composite format. The use of the SCA page in the sales comparison approach will require the appraiser to checkmark the “Remainder After” and “Improved” boxes at the top of this page.

The comparables should be thoroughly screened before using them in this grid. It is suggested that at least three comparables be utilized in developing the valuation grid. A full explanation is appropriate when fewer sales are utilized.

All characteristics dissimilar to the subject should be noted on the form and explained in the discussion portion of the report. A lengthy explanation is not required; however, the appraiser should explain the basis for the adjustment. If there is a question of comparability due to large adjustments, the appraiser should fully explain the reasoning for the use of that comparable. The explanation of the appraiser’s reasoning for the various elements of adjustment must be in sufficient detail to allow the reviewing appraiser to make a sound judgment as to the validity and acceptability of the appraiser’s adjustments. A reconciliation of the sales to an indicated value must be given. The appraiser will conclude the reconciliation explanation with a mathematical calculation. The estimated value is a reconciliation of the indicated unit values of the comparable sales.

Form : At the top of this form, the appraiser should designate that this is a comparable

improved

sale. This supplement is used to describe the essential facts regarding each comparable transaction. A photograph clearly depicting the comparable is required. The appraiser and reviewing appraiser must personally inspect each comparable. The appraiser is to verify the sales information of each sale. The person with whom the sale is verified will be identified on the form. Information about each sale is to include the names of the buyer and seller, total land area, gross building area, net rentable area, complete improvement description, current use, intended use, zoning/restriction, consideration paid, financing, and conditions of sale.

If the validity of the sale is affected by the financing, then an explanation is required. If additional information is required, the appraiser may attach a separate sheet to this form. All supporting documentation should follow each promulgated page and be numbered sequentially using the structured page numbering system.

If the income stream is impacted by the acquisition, it should be reflected in this approach. New rental comparables may be selected. Other factors affecting the income stream such as, reduced rental income, vacancy, or expenses should also be considered.

The appraiser is not limited to the use of the direct capitalization methodology in estimating value. If a discounted cash flow (DCF) analysis, building residual technique, or other technique is more appropriate to the valuation of the subject, then that technique should be presented on the lower portion of this page. It may be appropriate to provide more than one technique to support a value conclusion.

For residential properties, the gross rent multiplier (rather than direct capitalization technique) will perhaps better reflect the reactions of the market. If the gross rent multiplier is used, sales establishing the multiplier should be included in the report using the Comparable Data Supplement pages.

In some instances, it may be necessary for the appraiser to include factors not accounted for in the typical direct capitalization calculation. If supported by the market, the value of excess land should be reflected on the line provided.

Form : At the top of this form, the appraiser should designate that this is a comparable

rental

. This form is used to describe the essential facts regarding each comparable transaction. A color photograph clearly depicting the comparable is required. The appraiser and reviewing appraiser must personally inspect each comparable. The appraiser must verify the lease information on each comparable rental property, and identify the person with whom the lease information is verified. Information about each rental is to include the rental rate, lease term, occupancy and tenant information, operating expenses, any special lease terms, and the parties named in the lease. If additional information is required, the appraiser may attach another sheet to this form.