I need value definition guidance

[Valuadora]

I am currently incompetent and trying to become competent in an assignment:

I am appraising the underlying fee only for a property that is proposed for a conservation easement (I will not be valuing the proposed easement in this case).

I have been asked to comply with USPAP, Yellow Book, and California Department of General Services Appraisal Specifications.

My problem is the definition of value, as Yellow Book calls for "most probable" price based on an "economic highest and best use" while DGS calls for "highest price."

Can I actually comply with the request to satisfy both Federal Land Ack and CA DGS?

Thank you
Nancy

 

[Stone]

I am currently incompetent and trying to become competent in an assignment:

I am appraising the underlying fee only for a property that is proposed for a conservation easement (I will not be valuing the proposed easement in this case).

I have been asked to comply with USPAP, Yellow Book, and California Department of General Services Appraisal Specifications.

My problem is the definition of value, as Yellow Book calls for "most probable" price based on an "economic highest and best use" while DGS calls for "highest price."

Can I actually comply with the request to satisfy both Federal Land Ack and CA DGS?

Thank you
Nancy

If you need to comply with Yellow Book, you have to use that definition (I believe). As far as I know, that isn't something that can be messed with. I have no idea about CA's rules but in WI if I am performing an appraisal for easement purposes and it is going to have to be done to USFLA standards, then it has to be done the way the feds want it.

I would talk to whoever will be doing the review and get guidance.

 

[GregoryK]

Federal law supercedes State and Local Law when there is a conflict. You should use the definition used in the Uniform Standards of Federal Land Acquisition.

 

[stefan olafson]

I agree with Greg, federal guidelines supercede state of California.

 

[Valuadora]

thank you all

Thank you very much, guys. That makes sense.
Nancy

 

[cejack]

Federal vs. State

If your client is clueless and can't provide any guidance then I would try to figure out the intended use and context of the appraisal and pick the proper definition. I agree with the consensus above with the exception that federal law doesn't supercede anything when it's not applicable in the first place.

Some state folks just throw out Yellow Book every time they breathe but in many cases where federal funding is not involved (happens sometimes) then state law or guidelines apply.

If this is a state taking case, then state eminent domain law would apply. If federal taking, then likely UASFLA.

Please read the UASFLA reporting guidelines and follow their skeleton outline format in your report even if you don't have a taking. (Why people want you to use UASFLA when there is not a taking - I'll never know...But they do... Please recognize that UASFLA was originally written for federal land acquisitions in an eminent domain context. )

I guess what I'm saying is make sure this is truly a federally related acquisition. If it is a state acquisition of a conservation easement and there are no federal funds or oversight involved (sounds like that's what's going on here) UASFLA may not be applicable. Lots of guys just spit out USPAP, UASFLA, and internal department guidelines any time they breathe word of ordering an appraisal and don't think what's applicable. Your state guideline of "highest price" may be applicable if there truly is no federal involvement here. (UASFLA would not be applicable in that case.) Anyhow, try to get to the bottom of this. If anyone you know in the chain of command can tell you about federal funding or oversight regarding this easement acquisition, then UASFLA is probably appropriate. If you know it is a state acquisition with state funding, then UASFLA may not be applicable. Your clients, if competent should know this stuff. The problem is assuming anybody is competent at anything nowadays.

My quals: DOI ASD/BLM, Forest Service, Army Corps experience preparing lots of UASFLA compliant narrative appraisal reports.

 

[Valuadora]

Federal vs. State

Thank you
The federal agency is involved is an agency that requires UASFLA, so I know for this one that it applies. After reviewing your and the other posts, I believe that by using the UASFLA definition of value I will satisfy all the intended users.

Thank you again everyone
Nancy

 

[Terrel L. Shields]

This thread is another reason why there needs to be a uniform application of a single set of rules. Namely, an appraiser ought to be given a choice. Use USFLA, USPAP, or some third option the "Fannie Speak Rules" for FHA -FNMA _Freddy, FmHA, VA, etc.

We cannot serve 2 masters..or 3. The feds ought to set the market value definition in stone for each of the 3 options, and supercede all state laws. Otherwise, we will continue a system that makes liars out of us and no alternative but to acknowledge the lie and go on... The fact no judge would do more than roll their eyes at the inconsistency does not mean it does not need changed.

 

[Stone]

This thread is another reason why there needs to be a uniform application of a single set of rules. Namely, an appraiser ought to be given a choice. Use USFLA, USPAP, or some third option the "Fannie Speak Rules" for FHA -FNMA _Freddy, FmHA, VA, etc.

We cannot serve 2 masters..or 3. The feds ought to set the market value definition in stone for each of the 3 options, and supercede all state laws. Otherwise, we will continue a system that makes liars out of us and no alternative but to acknowledge the lie and go on... The fact no judge would do more than roll their eyes at the inconsistency does not mean it does not need changed.

I don't know...they already have that to a degree. If federal money is involved in the funding, UASFLA applies unless the specific agency has an exemption. Some programs are specifically exempted from needing to use UASFLA, but knowing which ones are which is part of the SOW discussion. And, being an appraiser who can wade through the different sets of requirements to meet your clients needs is a good business tool.

 

[Stone]

I should add - when you do this type of stuff with regularity it isn't so much of a mystery. Just like any area of appraisal if you work in an area you are more familiar with it than those who don't. I don't really see that as being all that big a deal. Different clients have different needs throughout the spectrum of appraisal services.