UP Standards

2.4.1. Property Rights Appraised.The terms of the leasehold estate acquired must be clearly discussed in the appraisal. Any differences between the government’s lease and typical leases in the market must be described and analyzed. The analysis should address all of the differences identified in Section 1.8. 

2.4. Reporting Requirements for Leasehold Acquisitions.The reporting Standards presented above provide the framework for reporting the results of an appraisal developed for a leasehold acquisition. The following are additional reporting requirements that apply to these special assignments. 

2.3.7. Exhibits and Addenda. Legal Instructions.Any legal instructions must be presented.  Location Map.This exhibit should display the location of the subject property within the city or area in which the property is located. All maps should include a north arrow and the identification of the subject property.  Comparable Data Maps.These maps might include, among other items, a comparable land sales map, a comparable improved sales map, and a comparable rentals map. The maps should include a north arrow and show the locations of both the comparable sales and/or rentals and the subject property. If this requires the use of a map that is not of a readable scale, secondary maps showing the specific location of each comparable should be included. …

2.3.6.3. Special Benefits. The appraiser shall identify any special or direct benefits accruing to the remainder property and explain how and why those benefits have occurred. 

2.3.6.2. Allocation and Damages.Damages, as such, are not appraised. However, the appraiser shall briefly explain any damages to the remainder property and allocate the difference in the value of the property before and after the acquisition between the value of the acquisition and damages to the remainder. The appraiser should note that such allocation is an accounting tabulation and not necessarily indicative of the appraisal method employed.  If damages have been measured by a cost to cure, the appraiser must justify the cost to cure143 and demonstrate that the cost to cure is less than the damage would be if the cure was not undertaken. 

2.3.6.1. Recapitulation.The appraiser must report the difference between the value of the larger parcel and the value of the remainder by deducting the property’s after value from its before value. 

2.3.6. Acquisition Analysis (Partial Acquisitions Only).This part of these Standards is applicable only in partial acquisition appraisals. The requirements in Sections 2.3.6.2 and 2.3.6.3 are identified to assist agencies in meeting their obligations under the Uniform Act. If the appraisal report is being prepared for condemnation trial purposes, trial counsel for the United States may instruct the appraiser to omit these sections. 

2.3.5.6. Reconciliation and Final Opinion of Market Value.The appraiser must describe the reasoning applied to arrive at the final opinion of value of the remainder property, addressing all the requirements in Section 2.3.3.6. 

2.3.5.5. Income Capitalization Approach – See Section 2.3.3.5. 

2.3.5.4. Sales Comparison Approach – See Section 2.3.3.4.