TX DOT, Eminent Domain, and property owner/CPA

[Jimmie West]

Review and Rebuttal of TxDot Appraisal

I've tried a few times to create a new thread, but have failed, so please excuse my posting of a new question here, but it seemed a good choice. J

First, I am not a licensed appraiser. However, I am a CPA and a licensed Broker in Texas.

I'm faced with review and rebuttal of a State of Texas commissioned appraisal of a section of my property being "acquired" by the State. The local appraisers don't wish to touch rebutting the State on this highway project.

There are gross errors in the appraisal. I've put together an analysis and review and an opinion of value using the appraiser's provided comps. I do have more comps available to me, and they are more current that that used by the state appraiser, and I intend to prepare an additional valuation using the more current comps (which were also available at the time of the state's appraisal).

Should I follow USPAP Appraisal Review guidelines (I'd prefer to) and how do I address the fact of my personal ownership and interest in the Certification statement. Or is performing an appraisal and/or review for one's own property just completely at odds with the standards of USPAP?

If someone has a an Appraisal Review format that they would share with me, I'd appreciate that as well.

Thanks, Jimmie (I hope my efforts to submit this post aren't creating multiple posts, but I can't get it go through. J)

 

[Fred]

I'm faced with review and rebuttal of a State of Texas commissioned appraisal of a section of my property being "acquired" by the State. The local appraisers don't wish to touch rebutting the State on this highway project.

How did this fall into your lap?

 

[Jimmie West]

The state of Texas is widening Hwy 69. They presented me with their appraisal for land value being acquired and fence damages to my ranch just before Thanksgiving, with a 30 day window to accept or counter. Just before Christmas I requested an extension of time to respond, and I now have until Feb. 1. They are quite clear both orally and in writing that this is my only shot at countering.

The land being acquired is a mere 2.65 acres, however it is Highway frontage, and the appraiser used the parent tract acreage of 47 acres as his basis for Size adjustments to the Subject property, rather than the 2.65 being acquired. A Size adjustment was all that he made to the Comp sales, and those were made backwards -- larger tract sales price reduced by $400 (with no explanation provided I might add), no consideration was given to the comps being several miles down county farm roads etc..., or adjustments to the 2005 comp sales for Time, or adjustments for Frontage location.

It has fallen in my lap, because I have no other recourse but myself to review the state appraisal and arrive at a proper valuation. Also, I have a contiguous 165 acre tract from which they are 'acquiring' about 10 acres, that I must also review and re-evalute myself, with much the same errors and omissions.

Any advice and guidance would be most appreciated. Jimmie

 

[Mr Rex]

The state of Texas is widening Hwy 69. They presented me with their appraisal for land value being acquired and fence damages to my ranch just before Thanksgiving, with a 30 day window to accept or counter. Just before Christmas I requested an extension of time to respond, and I now have until Feb. 1. They are quite clear both orally and in writing that this is my only shot at countering.

The land being acquired is a mere 2.65 acres, however it is Highway frontage, and the appraiser used the parent tract acreage of 47 acres as his basis for Size adjustments to the Subject property, rather than the 2.65 being acquired. A Size adjustment was all that he made to the Comp sales, and those were made backwards -- larger tract sales price reduced by $400 (with no explanation provided I might add), no consideration was given to the comps being several miles down county farm roads etc..., or adjustments to the 2005 comp sales for Time, or adjustments for Frontage location.

It has fallen in my lap, because I have no other recourse but myself to review the state appraisal and arrive at a proper valuation. Also, I have a contiguous 165 acre tract from which they are 'acquiring' about 10 acres, that I must also review and re-evalute myself, with much the same errors and omissions.

Any advice and guidance would be most appreciated. Jimmie

Hire a Certified General that does eminent domain work in your area. Otherwise, be run over by the DOT truck and accept their offer. I am not sure about Texas, but sounds like you are trying to do an appraisal and are not an appraiser. They might take your land on their terms and then turn around and go after you for performing an appraisal without a license. As the old saying goes, he who represents himself has a fool for a client.

 

[Fred]

It fell into your lap because it is your property.

I would not worry about the form of the review. The "standards" call for identifying the property, report, dates and other basic stuff. You have laid your objections and the ones relating to locaiton and time resonate.

I am not sure what you mean by size adjustment from the parent. tract. Are you referring to a "before and after" appraisal? That is, the value of 47 acres less the value of 44.35 acres equal estimated compensation for the loss of 2.65 acres.

There are some valid reasons for not appraising the 2.65 directly. Part of it has to do with laws and case law. Part of it could be plain old economics. - for example - if this is a road-widenig, the remainder would still have frontage on the same road (and maybe on a better road).

 

[Jimmie West]

While I don't have an appraisal license, I am a CPA, and over the course of my career I've done extensive appraisal review for financial institutions.

Also, per phone conversations with TALB, I do, as licensed real estate broker in Texas, have the right/option to write or review an appraisal, not just issue a Broker's Opinion of Value, which I will do as well, btw. However, I haven't gotten a clear answer on the issues of doing so for my own property.

As I said, I'd like to do this in accordance with USPAP, and prefer to approach this as a review with an opinion of value. I'd like to have the generally used format/structure for an appraisal review. I've read through the standards, yet I know there must be a general structure and flow to an appraisal review.

The appraiser's in my area do not wishto appraise any of the DOT acquisition properties in this area as they plainly state they do not wish to appear in court to support their valuation.

If you know of a qualified appraiser in the Southeast area of Texas who would review and re-evaluate the State's appraisal, please let me know.

I'd really like to send someone my current review and analysis for their comments, and I'd really like to get an example of a formal appraisal review and revaluation for an example to go by.

I'd also really like to know how USPAP addresses appraisal and appraisal review of personally owned property.

Many Thanks, Jimmie

 

[Mr Rex]

The biggest thing in USPAP that will hamstring you is that USPAP does not allow advocacy. Pretty hard for you not to be considered an advocate for yourself in a taking. Surely there are CG appraisers in Texas that go up against the DOT regularly. They most likely will not be cheap, because fighting the govt is a David and Goliath battle.

 

[Fred]

I'd also really like to know how USPAP addresses appraisal and appraisal review of personally owned property.

There is no conflict of interest restriction. One the certificaton page, one can indicate that one "does" or "does not" have an interest.

 

[Mr Rex]

Jimmy, Mr Santora is certainly one who knows USPAP and is correct. However IMHO, you trying to represent yourself is more than a bit Quiotix at best. You are already in dire straights time wise, find a CG ASAP. I suggest contacting the nearest Appraisal Institute chapter and get a handful of names of MAIs that do this type work. Maybe (and a pretty sizeable maybe) you can find one to help you in this abbreviated time frame with the assistance of the work you have already done. You sound like you probably understand what you are doing well enough, but you don't need a short course in USPAP, you need a CG that knows what's up when fighting the Texas DOT. MHO.

 

[Charles Witt]

He has one of thgosew newfangled cars, the SKIPPY MOBILE.