1.7.1.2. Benefits. As with damages, appraisers must be aware that the legal rules regarding what constitutes indirect (general) benefits and what constitutes direct (special) benefits may differ between state and federal rules. The extent of a benefit to a remainder parcel is a fact question that must be well supported by the appraiser. Whether the benefit is general or direct (special) is a mixed fact/law question and client agency counsel should be consulted to resolve any question about this classification.

Appraisers should give the same consideration to benefits as they do to damages in developing an opinion of the market value of remainder properties. Benefits can take many forms, such as when the project has caused the remainder to have lake frontage, frontage on a better road, more convenient access, improved drainage, irrigated land, and an improved view. An upward shift in highest and best use of the remainder property is often an indication of direct (special) benefits, and direct benefits must be considered when appraisers develop an opinion of the value of remainder properties, even though other lands may have the same benefits from the project.