Appraisal
Responsibilities & Objectives
The Appraisal Section is responsible for the process of estimating just compensation for property rights acquired for the construction of transportation facilities.
Just compensation will be paid for all real estate acquired by the Department.
All real estate will be appraised before the initiation of negotiations, unless we waive the necessity for an appraisal. The criteria for waiving the need for an appraisal is that the valuation problem must be uncomplicated and the fair market value is estimated to be $10,000 or less. A waiver valuation will be completed for all real estate acquired for which appraisals have been waived.
All valuation reports, whether they are appraisals or waiver valuation, are reviewed by an appraisal reviewer, who not only analyzes the report but also personally inspects the property. Based on the review of the appraisal or waiver valuation, we establish the amount we believe to be the just compensation to be offered for the real estate being acquired for the project.
In situations where a portion of a property is taken, the appraisal or waiver valuation will also estimate damages and special benefits to the remainder property. Special benefits, if any, may only be offset against damages to the remainder.
The Appraisal Section also estimates costs to acquire property rights for proposed transportation projects. The function of the cost estimate is to aid the decision making process. The primary use of cost estimates is to assist in cost effective design of projects, to forecast budgetary needs and to aid in cash flow management.
The Appraisal Section maintains an Approved Appraiser List for those independent fee appraisers retained by the Department to complete appraisals or reviews on those tracts not appraised or reviewed by our Staff Appraisers and Staff Review Appraisers.
Resources
Frequently Asked Questions
How do you determine how much you will pay for my property?
All real estate will be appraised before the initiation of negotiations, unless we waive the necessity for an appraisal. The criteria for waiving the need for an appraisal is that the valuation problem much be uncomplicated and the fair market value is estimated to be $10,000 or less. A waiver valuation will be completed for all real estate acquired for which appraisals have been waived.
How do I know if the offer to acquire my property is fair?
To avoid litigation and to assure consistent treatment for owners and promote confidence in the Department's land acquisition program, the Department has policies to encourage and expedite the acquisition of real property by agreement with owners.
We employ a staff of independent appraisers and review appraisers to do the majority of our valuation work. When workloads demand, we retain independent fee appraisers. The appraiser makes an in-depth analysis of your property and the affects of the taking on your remainder property.
The Department will make an offer that is not less than the amount of the approved reviewed appraisal and will provide you with a written statement and summary of the basis for the offer. The statement will include an allocation of value for the part taken and report the amount of damages if applicable.
What if the remainder property has little or no use to me?
If the department determines that the remainder property has little or no value or utility to you, the Department will make an additional offer to acquire the remainder property.
How can I get market value for my property when values are declining because of the new road?
Any increase or decrease in market value of the real property after the date of the resolution to construct the transportation improvement caused solely by the public improvement will be disregarded in determining the compensation for the property. Physical depreciation under the control of the property owner is an exception to this procedure.