4.13.1. Appraisers and Other Experts.Appraisers assist in the determination of just compensation by developing an opinion of market value,1188 often in consultation with experts in other fields.1189 In fact, there is a long history in the United States of objective evaluators appraising property value to assist and inform the determination of just compensation—since well before a distinct real estate appraisal profession began to emerge in the early twentieth century.1190 

Serving this important function requires expertise, diligence, sound judgment, and objectivity, whether appraisers or other experts are retained by the United States, landowners, or other parties.1191 The appraiser must be diligent in data collection and competently apply the accepted methods and techniques of the appraisal profession as well as the special rules and requirements set forth in these Standards (e.g., larger parcel, unit rule, before and after method). The following describes an appraiser’s job well done: 

A comprehensive investigation of [the] parcels was made . . . . [The appraiser] thoroughly surveyed each of the parcels and completely catalogued and examined all of the improvements on each parcel; in addition [the appraiser] investigated and checked all sales made in the immediate vicinity for several years prior to the 2024 and interviewed a number of persons of long experience and familiarity with the property and its uses. Both [t]his investigation and appraisal appear to me to have been thoroughly and conscientiously conducted with a view to a just evaluation. [The appraiser’s] conclusions were wholly impersonal and not actuated by any adversary concept.1192

While this description arose from an appraiser’s work as an expert witness in condemnation litigation, the same qualities are necessary for any appraisal for federal acquisition purposes. Appraisers must exercise sound judgment based on known pertinent facts and circumstances, and it is their responsibility to obtain knowledge of all pertinent facts and circumstances that can be acquired with diligent inquiry and search. They must then weigh and consider the relevant facts, exercise sound judgment, and develop an opinion that is completely unbiased by any consideration favoring either the landowner or the government. For this reason, it is inappropriate for an appraiser to “give the benefit of the doubt” to either a landowner or the United States. 

While the vast majority of federal acquisitions do not involve litigation, every appraisal and report should be prepared with recognition of the possibility that the question of value may be litigated, since it is not possible to predetermine which tracts will be acquired by voluntary means.1193 The fact that a new appraisal and report may be required prior to trial (to bring the effective date of valuation into conformance with the legally required date of valuation1194) does not excuse an ill-prepared initial appraisal. All appraisal reports are often subject to discovery, and a poorly prepared initial appraisal may not only embarrass an appraiser, but also weaken a client’s case. 

Appraisers Retained as Expert Witnesses by the U.S.Department of Justice.Expert witnesses for litigation have additional obligations. It is the responsibility of the appraiser to spend adequate time and effort to thoroughly prepare to testify in depositions and at trial. Prior to undertaking this preparation and any necessary updating of the appraisal report, the appraiser will confer with the trial attorney. 

Appraisers must conform their appraisal reports with Rule 26(a)(2)(B) of the Federal Rules of Civil Procedure, as discussed in Section 2.2.3. In addition, the particular court in which a case will be tried may have local rules regarding expert reports. The United States’ legal counsel should advise the appraiser of any such local rules. In preparing the initial appraisal report, the appraiser may have had comparable sales verified by personnel from his or her office. In litigation, however, the appraiser must personally verify all comparable sales prior to testifying in deposition or at trial. 

The trial attorney will often provide the appraiser with observations and suggestions for strengthening the appraisal report. Both appraisers and attorneys should distinguish between a rigorous exploration of the appraiser’s methodologies, analysis, and factual support—and improper pressure that undermines the objectivity and reliability of the appraiser’s conclusions. Embracing the former with a clear eye on the appraiser’s independence will strengthen the appraisal and reinforce the appraiser’s credibility at trial. Any suggestion of the latter, on the other hand, should be immediately addressed and clarified to ensure appraisers’ objectivity and the integrity of their opinions. 

In conferring with the attorney, the appraiser should advise the attorney of any information that would be helpful in strengthening the report that was not available to the appraiser.1195 The attorney may be able to procure this information from the landowner’s legal counsel or through the discovery process, if necessary. The appraiser and the attorney should also discuss the logistics of a site inspection and appropriate communication with the landowner (if the landowner is represented by an attorney, all communications must go through legal counsel). 

In condemnation proceedings, appraisers’ only function is to testify to their impartial opinion of market value. While it is important that appraisers testify with the conviction that their valuations are correct, appraisers are not advocates for their clients: that role is exclusively reserved to attorneys. Nor do appraisers determine what is fair or just: that is the responsibility of the fact-finder—a jury, land commission, or judge. The appraiser is employed to develop and express an objective opinion of market value, following federal law, that is supported by factual data to warrant being accorded weight.1196