Document Sample
					                        APPRAISAL REPORT FORM




COUNTY:                 New Castle

PURPOSE OF APPRAISAL:   The purpose of this assignment is to estimate the fair market value
                        contribution to the overall tract of the lands taken and/or
                        encumbered with easements by the State of Delaware.


                        Maps and diagrams showing the parcel and the easements are
                        incorporated in the report.




ATTACHMENTS:            Narrative
                        Assumption & Limiting Conditions
                        Certificate of Appraiser
                        Locational Maps
                        Copy of Deed

DelDOT Real Estate              Page 1 of 11                            DOCUMENT NO. A5
                                                                             1 April 2008
         Location. The property being appraised is a ______ tract of land situated on the ________ side of
__________________, a short distance ______ of its intersection with __________________,
__________________ Hundred, New Castle County, Delaware. The property is identified by New Castle
County as Tax Parcel _________________. The property's geographical location is marked on the local
map, which follows.
         Ownership.        Fee simple ownership of the property is recorded under the name of
______________________________. The subject is recorded in New Castle County records in Deed
Book _____, page _______. A copy of the deed offering full legal description is located in the Addenda at
the end of this report.
         History.         The   property   was     transferred    to   the    above    referenced   owner   in
___________________for a consideration of ______________. {explanation and/or discussion if needed]

         [explanation and discussion of owner contact]

         The fee simple estate makes up the property rights appraised. It is defined:
         Absolute ownership unencumbered by any other interest or estate, subject only to the limitations
         imposed by the governmental powers of taxation, eminent domain, police power, and escheat.
         (Page 140)

         This definition and all others used in this report are from the following publication:
         American Institute of Real Estate Appraisers, THE DICTIONARY OF REAL ESTATE APPRAISAL,
         3 ed. (Chicago: American Institute of Real Estate Appraisers, 1993).

         Market value as used in this report is defined as:
         The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other
         precisely revealed terms for which the specified property rights should sell after reasonable
         exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and
         seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is
         under undue duress. (Page 222)

DelDOT Real Estate                                Page 2 of 11                               DOCUMENT NO. A5
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                     LOCATION MAP

DelDOT Real Estate      Page 3 of 11   DOCUMENT NO. A5
                                            1 April 2008
        Contribution is defined as:
        The concept that the value of a particular component is measured in terms of its contribution to the
        value of the whole property, or as the amount that its absence would detract from the value of the
        whole. (Page 68)

        Just compensation is defined as:
        In condemnation, the amount of loss for which a property owner is compensated when his or her
        property is taken; should put the owner is as good a position pecuniarily as he or she would be if
        the property had not been taken; generally held to be market value. (Page 168)

        A permanent easement is defined as an easement that lasts forever. The easement effectively
gives the Department the right to use the land area for any and all highway related purposes. Additionally,
the owner shall not use the easement area in any way that will interfere with or be detrimental to the present
or future use of the easement area by the Department. This substantially encumbers the property and
restricts future utilization available to the property owner. Measurement of the value loss to the permanent
easement is based on a percentage of the land’s unencumbered market value. [if pertinent to the subject,
actual percentage used is appraiser’s call – if not, a statement to that effect needs to be added]

        A utility easement is “an interest in real property that conveys use, but not ownership, of a portion
of an owner’s property” (page 99). Its purpose is to allow lines for utility systems to be placed on a property.
As a portion of the property rights is lost in the area under easement, a percentage is applied which
reduces the land’s fee simple value. [if pertinent to the subject, actual percentage applied is appraiser’s call
– if not, a statement to that effect needs to be added]

DelDOT Real Estate                               Page 4 of 11                              DOCUMENT NO. A5
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        A temporary easement is granted “for a specific purpose and a specific time period” (Page 300).
For example, a temporary construction easement may be in effect through the duration of construction of
an improvement. This project is scheduled to (explanation of time frame); therefore, the TCE has been
valued based on a rental of the property for a nine-month period. [if not pertinent to the subject, eliminate
last sentence and add statement indicating this component is not applicable to the subject]

        [brief description of the subject and the project’s impact on such].
        This report is a summary format, which will describe the property and estimate its market value as
of the effective date of the appraisal. The analysis will consider the region and neighborhood, a conclusion
as to the property’s highest and best use, and the valuation analysis. It is based on an inspection of the
property and on surveys of market, cost, and income data pertinent to this assignment. Appropriate
methodology is applied and an estimate of market value is developed for the property.
        Therefore, the property will be valued as “vacant land”. The evaluation of the land area subject to
_____________________________________________________________________ will be based on a
“strip take” method. This valuation concept considers the partial acquisition and/or easement areas to be
valued as an integral part of the whole. This report is a summary format, which will describe the property
and estimate its market value as of the effective date of the appraisal. The analysis will consider the region
and neighborhood, a conclusion as to the property’s highest and best use, and the valuation analysis. It is
based on an inspection of the property and on surveys of market, cost, and income data pertinent to this
assignment. Appropriate methodology is applied and an estimate of market value is developed for the
        In the appraisal of land, the Sales Comparison Approach is the most applicable appraisal
technique in that it best displays actual buyer/seller motivations within the subject’s locale for these
particular property types.
        In the application of the Sales Comparison Approach, the valuation premise is to estimate the
market value contribution of that area taken, or encumbered, to the overall parcel. Utilizing this premise,
the appraiser first estimates a unit rate for the overall tract, which is then applied to the affected areas. This
unit rate applies equally to the total parcel, and consideration is not given to physical and locational
characteristics of the affected areas as it relates to the overall parcel. This approach is premised on the
idea that each unit of land area contributes equally to the overall site value; that is, the taking does not
negatively or positively impact the remaining property.

DelDOT Real Estate                                Page 5 of 11                               DOCUMENT NO. A5
                                                                                                  1 April 2008
         The subject of this report is a ______________________ acre tract of land located at
         [brief property description]
         The             area           affected        by        the          Department’s            project
         There are no easements on the property other than typical utility easements. Public utilities serving
the                                                    site                                               are
         The Water Resource Protection Areas (WRPA) maps for New Castle County indicate
         A study of the soil survey maps of New Castle County issued by the U.S. Department of Agriculture
Soil Conservation Service in cooperation with Delaware Agricultural Experimental Station reveals a
predominance of __________________________________________________.                        This type is a
________________ with _____________________percent slopes and _____________________to
building development.
         Photographs on the following page will enable the reader to view certain aspects of the property. In
addition, maps on the following pages show the configuration of the parcel and a delineation of the
____________________________________________. [INSERT TAX MAP, COPY OF R/W PLANS AND

         In appraisal practice, the concept of highest and best use represents the premise upon which
value is based. In the context of most probable selling price (market value) another appropriate term to
reflect highest and best use would be most probable use.
         Real estate is valued in terms of its highest and best use. The Highest and Best Use is that
reasonable and probable use that will support the highest present value as defined as of the effective
date of the appraisal.
         [brief explanation of reasoning for highest and best use]. Therefore, it appears the subject’s
highest and best use would be __________________________________.

DelDOT Real Estate                                 Page 6 of 11                           DOCUMENT NO. A5
                                                                                               1 April 2008
         The appraisal process is a systematic program by which the problem is defined; the work
necessary to solve the problem is planned; and the data is gathered, classified, analyzed, interpreted,
and translated into an estimate of value. The appraisal process involves three basic approaches to
COST APPROACH.           The appraiser will normally base an opinion of value on one or more of the
following three approaches to value, emphasizing one or more as circumstances warrant.
         In the appraisal of vacant land, the SALES COMPARISON APPROACH is considered the most
         The SALES COMPARISON APPROACH produces an estimate of value by relating the subject
to similar properties, which have recently sold or are currently offered for sale in the same or in a
competing community. These properties are compared to the subject for various features such as date
of sale, location, physical characteristics, conditions of sale, etc. The analyzed sales indicate a value
range, which is correlated into an estimate of value. This approach is considered a reliable indicator
since market transactions represent the actions of buyers and sellers. It is based on the principle of
substitution, which implies a knowledgeable buyer will pay no more to purchase or rent a property than it
will cost to buy or rent a comparable substitute property.

         A thorough investigation in subject’s immediate vicinity was undertaken to find recent transactions
of land purchased for ______________________________________________ with which to relate to the
subject site. The transactions cited are considered representative of the best data available. The following
is an outline of the factual information pertaining to the data utilized in this analysis.

DelDOT Real Estate                                  Page 7 of 11                             DOCUMENT NO. A5
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                                              SALE        #











 COMMENTS:           [explanation of sale]


                                   PHOTO TAKEN BY ________________

DelDOT Real Estate                             Page 8 of 11          DOCUMENT NO. A5
                                                                          1 April 2008
                                         COMPARABLE SALES CHART

       DATA #
       $/SQ.FT &/or .AC



        The sales selected are considered representative of market activity and are valid comparables. All
the sales are cash or market financed transactions unless otherwise stated. They are transactions of
_________________________________ and each sale can be adjusted to the subject for various features
of dissimilarity, such as _____________________________________________________________.
        Each of the sales is considered as it relates to the subject and adjusted for differences, to indicate
an applicable unit rate for the subject property. The intention of this analysis is to imitate the perceptions of
the market place for this property type. Thus, features of the sales that are inferior to the subject results in
an upward adjustment. Sales superior to the subject are adjusted downward. Net adjustment is the end
results of this comparison, which is then applied to the unadjusted rate to arrive at an adjusted rate.
Quantification of the adjustments is based, where applicable, on actual percentage or dollar amounts as
reflected by analysis of comparable properties or one of several other means. Absent data to specifically
quantify any particular adjustment, a more subjective approach must be undertaken, utilizing experience
and judgment.
        The sales range in size from ______________________ acres in comparison to the subject at
________ acres.       Prior to adjustment, the sales indicate a price range from ____________ to
____________ per ___________.             After adjustment, this range is from _______ to ________
per___________.      This range brackets and points to a final value estimate at $               per            .

DelDOT Real Estate                                Page 9 of 11                              DOCUMENT NO. A5
                                                                                                 1 April 2008
         Valuation of the different components pertaining to the subject is as follows:

                   AREA OF
                   UNENCUMBERED VALUE OF
                          SF @ $      /SF
                   RATE OF RETURN                                                         10%
                   ESTIMATED ANNUAL RENTAL
                          @ 10%
                   ESTIMATED VALUE OF TCE
                      $    / 12 months x  (rounded)

         After considering the essential facts and circumstances as they relate to the subject property, the
market value of the property rights appraised, subject to the assumptions and limiting conditions outlined,
as of the effective date of the appraisal, is as follows:

                                      ESTIMATED JUST COMPENSATION
                    Fee Taking
                    Temporary Construction Easement
                    Permanent Easement
                    Site Improvements/Landscaping
                    Recommendation for Compensation (rounded)

DelDOT Real Estate                                Page 10 of 11                            DOCUMENT NO. A5
                                                                                                1 April 2008
                                   REAL ESTATE SECTION

NAME                                                   PARCEL NO.
ADDRESS                                                PROJECT
                                                       F.A.P. NO.

                                      CERTIFICATE OF APPRAISER

I hereby certify:

That I have personally inspected the property herein appraised and that I have afforded the property owner
the opportunity to accompany me at the time of the inspection. I have also made a personal field inspection
of the comparable sales relied upon in making said appraisal. The subject and the comparable sales relied
upon in making said appraisal were as represented in said appraisal.

That to the best of my knowledge and belief the statements contained in the appraisal herein set forth are
true, and information upon which the opinions expressed therein are based is correct; subject to the limiting
conditions herein set forth.

That I understand such appraisal may be used in connection with the acquisition of right of way for a project
to be constructed by the State of Delaware with the assistance of Federal-aid highway funds, or other
Federal funds.

That such appraisal has been made in conformity with the appropriate State laws, regulations and policies
and procedures applicable to appraisal of right of way for such purposes; and that to the best of my
knowledge no portion of the value assigned to such property consists of items which are noncompensable
under the established law of said State.

That any decrease or increase in the fair market value of the subject property prior to the date of valuation
caused by the public improvement for which the property is to be acquired, or by the likelihood that the
property would be acquired for such improvement, other than that due to physical deterioration within the
reasonable control of the owner, has been disregarded in determining the market value of the property.

That neither my employment nor my compensation for making this appraisal and report are in any way
contingent upon the values reported herein.

That I have no direct or indirect present or contemplated future personal interest in such property or in any
benefit from the acquisition of such property appraised.

That I have not revealed the findings and results of such appraisal to anyone other than the proper officials
of the Department of Transportation, or officials of the Federal Highway Administration, and I will not do so
until so authorized by State officials, or until I am required to do so by due process of law, or until I am
released from this obligation by having publicly testified as to such findings.

That my opinion of the fair market value of the acquisition, as unaffected by the project or announcement
thereof, as of            day of                  , is                                      based upon my
independent appraisal and the exercise of my professional judgment.

     Date                                                                Signature

DelDOT Real Estate                             Page 11 of 11                             DOCUMENT NO. A5
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