Current through Register Vol. XLI, No. 45, November 8, 2024
Section 53-3-5 - Criteria for Appraisals5.1. A detailed appraisal shall be prepared for all acquisitions. An appraisal shall contain sufficient documentation, including valuation data and the appraiser's analysis of that data, to support his or her opinion of value. At a minimum, the appraisal shall contain the following items:5.1.1. The purpose and function of the appraisal, a definition of the estate being appraised and a statement of the assumptions and limiting conditions affecting the appraisal.5.1.2. An adequate description of the physical characteristics of the property being appraised, a statement of the known and observed encumbrances, if any, title information, location, zoning, present use, an analysis of the highest and best use, and at least a five (5) year sales history of the property.5.1.3. All relevant and reliable approaches to value consistent with commonly accepted professional appraisal practices. When sufficient market sales data are available to reliably support the fair market value for the specific appraisal problem encountered, the acquiring entity may require only the market approach. If more than one approach is utilized, there shall be an analysis and reconciliation of approaches to value that are sufficient to support the appraiser's opinion of value.5.1.4. A description of comparable sales, if any, including a description of all relevant physical, legal and economic factors such as parties to the transaction, source and method of financing and verification by a party involved in the transaction.5.1.5. A statement of the value of the real property to be acquired and, for a partial acquisition, a statement of the value of the damages and benefits, if any, to the remaining real property.5.1.6. The effective date of valuation, date of appraisal, signature and certification of the appraiser.5.2. To the extent permitted by applicable law, the appraiser shall disregard any decrease or increase in the fair market value of the real property caused by the project for which the property is to be acquired, or by the likelihood that the property would be acquired for the project, other than due to physical deterioration within the reasonable control of the owner.5.3. If the owner of a real property improvement is permitted to retain if for removal from the project site, the amount to be offered for the interest in real property to be acquired shall not be less than the difference between the amount determined to be just compensation for the owner's entire interest in the real property and the salvage value of the retained improvements.5.4. No appraiser shall have any interest, direct or indirect, in the real property being appraised for the acquiring entity. Compensation for making an appraisal shall not be based on the amount of the valuation. No appraiser may act as negotiator for real property or interests in real property which the person has appraised.