State’s Appraisals to Establish Values

When the state and the LPA agree that the state will establish right of way values under the waiver provision of the contractual agreement, ROW PD will proceed with appraising in the usual manner, or by the use of “value findings.” ROW Program Office approval is not required for additional appraisals. All appraisal fees for appraisals for negotiation will be predetermined lump sum fees, and appraisal fees for preparation for and appearance in testimony will be based on an hourly rate in accordance with the appraiser’s contract in effect at the time of the assignment. Project agreement supplements to appraisal contracts will not be executed nor appraisal assignments made before ROW Program Office’s release of the project for right of way acquisition.
In addition to the usual instructions, the appraisers must be advised regarding the manner in which the LPA desires to handle right of way fencing and whether the cost of fencing will be a part of the appraisal value. If the cost of right of way fencing is to be included in the approved value, this cost will also appear in the appraisal. If the LPA desires to perform right of way fencing under a lump sum agreement or on an actual cost basis, the appraisers should be instructed that neither a value for existing fences whose use will be restored by the new fence nor any damage for an unfenced condition is to be included in the estimate of value.
The five-year sales data is required on all parcels when federal-aid funds are involved in any phase of the project including construction. Refer to , .