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• CHAPTER 2. APPRAISAL AND 20. GENERAL. This chapter describes proce- dures for the appraisal of real property. These pro- cedures are applicable for all Sponsors when they obtain appraisal and speciality reports for any par- cel of real property for airport projects under which Federal funds are requested or will be used. The sponsor will provide that: a. Real property will be appraised before the ini- tiation of negotiations with an owner. b. The owner or his designated representative will be given an opportunity to accompany the appraiser during his inspection of the property. c. It will establish an amount that it believes to be just compensation for the acquisition of real prop- erty before the initiation of negotiations with an owner. d. Any decrease or increase in the fair market value of real property prior to the date of valuation caused by the public improvement for which such property is acquired, or by the likelihood that the property would be acquired for such improvement, other than that due to physical deterioration within the reasonable control of the owner, will be disre- garded in determining the compensation for the property. e. Appraisers will not give consideration to nor include in their appraisals any allowance for reloca- tion assistance benefits. 21. APPRAISAL STANDARDS. The basic ref- erence for appraisals is contained in the "Uniform Appraisal Standards for Federal Land Acquisitions" published by the Interagency Land Acquisition Con- ference. Appraisal reports will conform to the fol- lowing: a. Depth of Report. The term "appraisal," as used herein, is a written statement of the appraiser's opinion of value fully supported by pertinent fac- tual data of an adequately described parcel of prop- erty as of a specified date. Accordingly, a mere opinion of an individual whether or not he be a qualified appraiser, regardless of his status or posi- tion in the community or area involved, unsup- ported by pertinent factual data, does not constitute and is not acceptable as an appraisal. APPRAISAL REVIEW b. Appraisal Data. Each appraisal report must be sufficiently supported by pertinent factual data and in such detail as to reveal that the appraiser has made an adequate study and analysis of property value data in the area involved, that he has consid- ered all pertinent and reliable data, and that he has used sound, Logical reasoning in developing his con- clusions as to the fair market value of the property involved. Such conclusions will be based upon basic appraisal techniques. c. Appraisal for Less Than Fee Title. Where less than full fee title is being acquired, such as an aviga- tion easement, the appraisal report is to be prepared by the "before and after" method. The appraisal will reflect the restrictive elements of the easement to be acquired and the potential effect of such ele- ments on the highest and best use. Full details with respect to any interference with the highest and best use of the property affected must be developed and explained, including reasoning of the appraiser where sufficient sales data is not available. This is of particular importance where it is concluded that damages due to imposition of the easement will occur. d. Partial Taking. Where the taking involves only a part of the property, the appraiser will de- velop the severance damage to the remainder, if any, including reasoning and sales data, if available, to support the conclusion. Again, the "before and after" method of appraisal is expected to be used. In these instances, the appraiser will indicate if the remainder constitutes an economic or uneconomic unit. e. Independently Prepared. Appraisal reports are to be independently prepared by qualified staff or fee appraisers. f. Preparation of Report. Appraisal reports are to be prepared in ink or typewritten, dated and signed by the individual making the appraisal prior to being submitted to a review appraiser. g. Appraiser's Certification. Each appraisal re- port will contain an appraiser's certification incor- porating as a minimum the requirements in appen- dix 3. A new certificate should be prepared where 9