On an inexpensive parcel having a value of $25,000 or less, form , rather than a formal appraisal report will be acceptable, provided the compensation does not include damages to the remaining property other than for items measurable by cost to cure. Should there be any damages that cannot be simply documented as cost to cure, form , rather than form

ROW-A-7

will be necessary.

The valuation process of using form

ROW-A-7 Real Estate Value Finding

is defined as a non-appraisal valuation. The property owner must be informed this method of valuation is not a formal appraisal and does not produce an appraisal report.

If the use of the Real Estate Value Finding Report is being considered to value a parcel and if the parcel to be acquired is known to be more than $10,000 in value, the owner must also approve of its use instead of an appraisal report. It is recommended that the use of this valuation process be considered and discussed during the pre-appraisal contact with the owner.

Instructions
Page 1 - This page identifies the parcel and classifies it as a whole or partial acquisition. The federal-aid project number is required on this page; it should follow the right of way account number. In addition, on the first page, market value is defined and the purpose of the appraisal is stated. The “Certificate of Appraiser” includes the appraiser’s opinion of value as of a date, and the dates which the subject and comparables were inspected. When a report is revised or supplemented and the final estimate of value is affected or changes the date of valuation, a new Page 1 of this form must be submitted to ROW PD.
Page 2 - Pertinent Photographs of the Subject & Estimated Value of Acquisition - At the top of this page, one photograph will be sufficient and should provide support for the appraiser’s conclusion of value.
At the bottom of the page, the table shows the value of the part to be acquired, the contributory value of any improvements located within the area to be acquired, and a summary of any cost to cure. The resulting value is the estimated total compensation. If needed, the ROW PD review appraiser can attach additional information. The plat map and field notes should also be included in this report.

The form provides for adequate analysis of the information considered in making the “Value Finding,” including reference to comparable sales and circumstances. Comparable sales data are available to the ROW PD review appraiser through previously approved project appraisals and other public sources of information. Form should be attached for each comparable used to achieve the value conclusion. Additionally, the form

ROW-A-7

should include at least a minimum description of the site and improvements to be acquired, along with field notes and plat map. If minor improvements are located within the area to be acquired, cost estimate sources should be identified.

Form is to be prepared by a ROW PD review appraiser or other ROW PD personnel with sufficient understanding of the local real estate market so as to be qualified to make the waiver valuation. Upon completion of the form

ROW-A-7

, another ROW PD review appraiser will prepare the form in the normal manner. If the ROW PD review appraiser preparing the form

ROW-A-7

is located in a ROW PD office that does not employ another qualified ROW PD review appraiser, the form

ROW-A-7

can be reviewed by either a ROW Program Office review appraiser or another ROW PD review appraiser. If the review appraiser or agency staff member preparing or reviewing the

ROW-A-7

is a state licensed appraiser, then the

ROW-A-7

must be supplemented to bring it into compliance with USPAP requirements.