***All appraisals must comply with USPAP and be consistent with the MDOT appraisal requirements.  If federal funds are used to acquire property then appraisals must also comply with Uniform Appraisal Standards for Federal Land Acquisitions .

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Environmental Audit of Suspected Contaminated Property
Prior to the appraisal of any land that is to be acquired, including donated land, the sponsor should secure an environmental audit of suspected contaminated property and provide the results to the appraiser for inclusion in the appraisal report. Appraisers should be aware of and report to the sponsor, before completion of the appraisal, actual property conditions that exist at a site that may warrant further environmental investigation. The appraiser may not assume the property is free of contamination when conducting an appraisal.

** All appraisers must consider and be familiar with  existing laws and regulations impacting properties in the vicinity of an airport  (including  AERONAUTICS CODE ,  Title 14:Part 77 ,  Title 14: Part 91 ,  Michigan Tall Structure Act , and  Airport Approach Plans ) to determine if there are any existing restrictions on properties in the project area.  APPRAISERS MUST CONSIDER LOCAL ZONING AND AIRPORT APPROACH PLANS   WHEN DETERMINING HIGHEST AND BEST USE (and any corresponding impacts on value) FOR PROPERTIES SURROUNDING LICENSED PUBLIC USE AIRPORTS.  Appraisers can  request a copy  of the  Exhibit "A" property map  to identify parcels with existing avigation easement encumbrances.

BEFORE AND AFTER APPRAISALS ARE REQUIRED TO BE COMPLETED FOR AVIGATION EASEMENTS UNLESS "the easement acquisition will not affect the remainder land or improvements (e.g. approach easement over agricultural land) " .  IN THESE INSTANCES, "the appraiser may apply a "part taken" approach citing their supported finding that the easement conveyance and use has no affect on remainder property".  IN MOST INSTANCES APPRAISERS SHOULD BE INSTRUCTED TO VALUE THE AIR RIGHTS ACQUIRED AND THE RIGHT TO CUT OR REMOVE TREES (e.g. trees should be treated as real estate and NOT as fixtures unless the trees are grown for a business such as a tree farm).

***Unless market data support can be found, an appraiser should never rely on a percentage or formula adjustment to reach a valuation conclusion by the use of averages, median, or means produced by the sum of available data. Without market data the use of formulas are inaccurate and outside the realm of real estate appraisal principle and theory. The use of formulas suggest a loss in value without considering highest and best use and often substitute appraisal judgment for damages that cannot be justified by market actions and influences.  An accurate estimate of value will rely on the individual appraiser's knowledge of market influences and sales data. The validity of an appraisal report is determined through sound market research and a logical explanation and correlation of the information the market provides.

AC5100.17; 2-10. SHORT FORM APPRAISAL REPORT  FOR LOW VALUE AND SIMPLE ACQUISITIONS.A short-form appraisal report is acceptable for low value and simple acquisitions. Examples of an uncomplicated acquisition are a single-family residence; unimproved residential or small commercial lot or a strip taking from a large parcel not involving significant benefits or damages to the remaining property. The Federal National Mortgage Association (FannieMae) or Federal National Home Loan Bank (FreddieMac) appraisal forms or comparable appraisal report forms in common use are acceptable summary report forms.  FAA Form 5100-112URAR  provides a cover sheet for summary appraisal reports citing the applicable FAA requirements to include with the form report.

Waiver of Appraisal  from   CFR 49 Part 24, section 24.102 (c)(2)  and  FAA Advisory Circular 5100.17 Chg 6  - The appraisal waiver may be applied for uncomplicated acquisitions, e.g. no impact on land use and reasonable value is apparent; and the market value is estimated at $10,000 or less.  However, when the appraisal waiver is applied, the compensation value must not be set arbitrarily at the $10,000 maximum value. The compensation must be reasonable and relate to the actual value range for the non-complex acquisition.  Exceeding the $10,000 threshold, up to a maximum of $25,000, is possible with MDOT or FAA approval.  

MDOT Appraisal Guidelines

FAA Order 5100.37B - see Chapter 2 

FAA - AC5100.17  Chapter 2 (Real Property Appraisal)

• Appraisal of Avigation Easements: Chapter 2 (sec. 2-15)-pg. 23
• Appraisal Report Requirements: Chapter 2 (sec. 2-9)-pg. 20

FHWA - The Appraisal Guide

Uniform Appraisal Standards for Federal Land Acquisitions

Legal Basis for Appraisal Standards for Federal Land Acquisitions

USPAP - Uniform Standards of Professional Appraisal Practice     

SEE CONSULTANT SELECTION RESOURCES  FOR APPRAISER LISTS AND INFORMATION RELATED TO APPRAISAL CONSULTANTS.

PLEASE NOTE:  SEPARATE LEGAL DESCRIPTIONS, EXHIBIT "X" DRAWINGS, AND APPRAISALS NEED TO BE PREPARED IF A PROPERTY IS IMPACTED BY BOTH EASEMENT TYPES (inside the RPZ and outside the RPZ).

Go to FORMS AND CLAUSES  for FAA recommended appraisal related forms.