§ 138e.64. Appraisal.
(a) An offer to purchase an easement shall be based upon one or more appraisal reports which estimate the market value and the farmland value of the farmland tract, as those terms are defined in § 138e.3 (relating to definitions). The initial appraisal shall be at the county board’s expense. This expense may be reimbursed as a cost incident to easement purchase in accordance with section 14.1(h)(6) of the act (3 P. S. § 914.1(h)(6)) and § 138e.68 (relating to statement of costs).
(b) An appraisal of market value and farmland value shall be based on an analysis of comparable sales, and shall be conducted in accordance with standards in the most recent edition of the Uniform Standards of Professional Appraisal Practice, published by the Appraisal Standards Board of the Appraisal Foundation. If an appraiser cannot practicably conduct an appraisal based on an analysis of comparable sales, the appraiser may conduct an appraisal using another methodology only if that methodology is an acceptable methodology under the Uniform Standards of Professional Appraisal Practice and the appraisal report clearly describes the information considered, the appraisal procedures followed and the reasoning that supports the analyses, opinions and conclusions.
(c) The value of a building or other improvement on the farmland tract will not be considered in determining the easement value.
(d) The appraiser shall be a State-certified general real estate appraiser who is qualified to appraise a property for easement purchase. An appraiser shall be selected by a county board on the basis of experience, expertise and professional qualifications.
(e) The appraiser shall supply a minimum of three copies of a narrative report which contains the following information and is in the following format:
(1) Introduction.
(i) A letter of transmittal.
(ii) The appraiser’s certificate of value as to market value, farmland value and easement value.
(iii) A table of contents.
(iv) A summary of salient facts and conclusions.
(v) The purpose of the appraisal.
(vi) The definitions, including definitions of market value, farmland value and easement value.
(2) Description of property.
(i) A brief area of neighborhood description.
(ii) A description of appraised property.
(A) A legal description.
(B) Property data and zoning.
(C) A brief description of improvements.
(D) Color photos of subject property’s fields and improvements.
(E) Tax map or official map used for tax assessment purposes showing the subject property and its relationship to neighboring properties.
(F) A legible sketch or aerial photograph of subject property showing boundaries, roads, driveways, building locations, rights of way and land use.
(G) A location map showing the location of the subject farmland tract in a county or municipality.
(H) Soils map showing property boundaries.
(3) Analyses and conclusions.
(i) An analysis of highest and best use.
(ii) The valuation methodology: market value.
(A) Comparable sales data.
(B) An adjustment grid.
(C) A locational map of comparable sales showing the location of the subject farmland tract with respect to the comparables. A single locational map shall be submitted with respect to each county from which comparable sales are drawn.
(iii) The market value estimate.
(iv) The valuation methodology: farmland value.
(A) Comparable sales data.
(B) An adjustment grid.
(C) A locational map of comparable sales showing the location of the subject farmland tract with respect to the comparables. A single locational map shall be submitted with respect to each county from which comparable sales are drawn.
(v) A farmland value estimate.
(vi) The easement value.
(vii) An appendix containing a brief statement of the appraiser’s professional qualifications and a copy of the appraiser’s current certification issued in accordance with the Real Estate Appraisers Certification Act (63 P. S. § § 457.1—457.19).
(f) The appraiser shall supply information concerning comparable sales as follows:
(1) At least three comparable sales shall be used for estimating market value and at least three comparable sales shall be used for estimating farmland value in an appraisal. If the appraiser cannot obtain sufficient comparable sales data within the same county as the subject farmland tract, the appraiser may use comparable sales from other counties, with the approval of the county board. The use of comparable sales which require adjustment of 50% or more is permitted only with the approval of the county board.
(2) Pertinent data for each comparable sale used in the preparation of the appraisal shall be stated in the appraisal report, including the date of sale, the purchase price, zoning, road frontage in feet (for determining market value) and soil mapping units (for determining farmland value). The appraisal shall include an analysis comparing the pertinent data for each comparable sale to the subject farmland tract. This analysis shall be in the form of a narrative statement of the information considered and the reasoning that supports the analyses, opinions and conclusions, and an adjustment grid assigning, when practicable and within the Uniform Standards of Professional Appraisal Practice referenced in subsection (b), approximate dollar values to adjustment shown on the adjustment grid.
(3) The location of each market value comparable sale used in the appraisal report shall be shown accurately on a comparable sales map depicting the entire county in which the comparable sale is located, and shall be sufficiently identified and described so it may be located easily. If the comparable sales map depicts the county in which the property that is the subject of the appraisal is located, that property shall also be sufficiently identified and described so it may be located easily.
(4) The location of each farmland value comparable sale used in the appraisal report shall be shown accurately on a comparable sales map depicting the entire county in which the comparable sale is located, and shall be sufficiently identified and described so it may be located easily. If the comparable sales map depicts the county in which the property that is the subject of the appraisal is located, that property shall also be sufficiently identified and described so it may be located easily. If a farmland value comparable sales map and a market value comparable sales map would depict the same county, they may be combined in a single map.
(5) For comparable sales used to estimate the farmland value, the appraiser may use sales of land that are confined to agricultural use because of agricultural conservation easements or other legal restrictions or physical impairments that make the land valuable only for agricultural use. Comparable sales shall be in primarily agricultural use. Data may also be gathered from farm real estate markets when farms have no apparent developmental value.
(6) The appraiser shall set forth the reasons the farmland comparable sales are confined primarily to agricultural use. Examples of these reasons include:
(i) The farmland tract has public or private land use restrictions.
(ii) The farmland tract is within a flood plain or a wetland (in whole or in part).
(iii) The farmland tract is landlocked, subject to additional easements, subject to restrictive zoning or has other physical attributes which limit its developmental capability.
(7) The appraiser shall provide at least one original and two copies of each report to the county board. The original of each report and all copies shall be bound with rigid covers.
(8) The appraisal shall include the entire acreage offered for easement sale. If, following completion of the appraisal, acreage is added to or deleted from the proposed easement sale for any reason, the appraisal shall be revised accordingly or the appraiser shall agree in writing to the use of a per acre value to account for the change in easement value resulting from such a change in acreage.
(9) If acreage is voluntarily withheld from the easement sale by the landowner through subdivision accomplished in accordance with the Pennsylvania Municipalities Planning Code, the appraiser shall, in making the estimate of agricultural conservation easement value, take into account any increase in the value of the subdivided acreage because of the placement of the easement on the remaining farmland.
Source The provisions of this § 138e.64 amended December 26, 1997, effective December 27, 1997, 27 Pa.B. 6782. Immediately preceding text appears at serial page (202919).
Cross References This section cited in 7 Pa. Code § 138e.19 (relating to purchasing procedures); and 7 Pa. Code § 138e.66 (relating to offer of purchase by county board).
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