UP Standards

2.3.5.3. Cost Approach – See Section 2.3.3.3. 

2.3.5.2. Land Valuation.The appraiser will develop an opinion of the market value of the remainder land for its highest and best use as if vacant and available for such use.142  If the acquisition includes one or more temporary construction easements, the impact of those easements on the value of the remainder property must be accounted for in the valuation of the land after acquisition. Any diminution in the remainder land value by reason of the temporary easements must be measured in accordance with Section 1.9.1, and then be used as the basis for an adjustment to the remainder’s land value in this section of the report. The diminution in the remainder’s land value by reason of temporary easements should not…

2.3.5.1. Analysis of Highest and Best Use.The appraiser shall state and explain the highest and best use of both the remainder land (as if vacant) and the remainder property (as improved). Impacts of the acquisition on the property’s highest and best use or the intensity of that use shall be specifically addressed and described. If restoration or rehabilitation of the remainder property will be required before it can be put to its highest and best use, the physical and economic feasibility of such restoration or rehabilitation shall be explained and justified. Major restoration or rehabilitation may require the services of an expert in the field, such as an architect, engineer, and/or contractor.140 If the acquisition includes a temporary construction easement,…

2.3.5. Data Analysis and Conclusions—After Acquisition (Partial Acquisitions Only). Introductory Note: These analyses and valuation sections relating to the remainder property constitute a new appraisal. In cases of an insignificant taking, the remainder may be so similar to the larger parcel before the acquisition that the same highest and best use analysis and the same cost, market, and income data and analysis will remain applicable and can therefore be referenced and employed in reporting the opinion of the market value of the remainder property. However, a change in the basic physical or economic character of the remainder may result in a change in the remainder’s highest and best use or the intensity of that use and may result in damages…

2.3.4.3.6. Zoning and Other Land Use Regulations.The appraiser must report the influence of zoning and other land use regulations on the remainder property.138 Specific attention should be given to the probability of a rezone, either up or down, of the property caused by the government’s project and the possibility that because of the acquisition, the remainder property has become nonconforming to land use regulations in areas such as lot area requirements, setbacks, and off-street parking. All requirements in Section 2.3.2.3.8 must be addressed. 

2.3.4.3.5. Assessed Value and Tax Load.The appraiser must estimate what the assessed value and annual tax load will be on the remainder property. This estimate is particularly critical if the income capitalization approach is to be utilized in developing an opinion of the value of the remainder property. In this connection, discussions with local assessing authorities are often helpful in making these estimates. All requirements listed in Section 2.3.2.3.7 must be addressed. 

2.3.4.3.4. History.If the appraisal is prepared after the date of acquisition, the appraiser must report the utilization of the remainder property since the date of acquisition as well as any sales or rentals of the remainder property, addressing all requirements listed in Sections 2.3.2.3.4 (Use History), 2.3.2.3.5 (Sales History), and 2.3.2.3.6 (Rental History). 

2.3.4.3.3. Fixtures.The appraiser must describe those fixtures remaining, addressing all requirements listed in Section 2.3.2.3.3. 

2.3.4.3.2. Improvements.The appraiser must describe those improvements remaining in whole or in part, addressing all requirements listed in Section 2.3.2.3.2. 

2.3.4.3.1. Site.The appraiser must describe the remainder site, paying particular attention to the shape, size, available utilities, and available access to the remainder site, addressing all requirements listed in Section 2.3.2.3.1.