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Independent fee appraisers must possess the appropriate license and be able to prove their qualifications when completing appraisals for projects with state and federal funding. Contact Aeronautics if there is a question regarding appraiser licensing or qualifications.

All appraisals must comply with USPAP and be consistent with the MDOT appraisal requirements.

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.

Report Requirements

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).

  • Due to required land use restrictions for properties that lie within the runway protection zone (RPZ), separate legal descriptions need to be prepared to clearly identify the portions of the parcel that lie within the RPZ and outside the RPZ. The exhibit X drawing must also clearly identify that portion of the property that lies within the RPZ.
  • 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.
  • AC 5100.17; 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.
  • Wavier of Appraisal:  CFR 49 Part 24, section 24.102 (c)(2) and FAA Advisory Circular 5100.17 - 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.