How does the team determine the fair market value of a potential site?
During the Feasibility Study, the team relies upon either the Regional appraiser, who should be part of the Site Investigation Team, or a contract appraiser to provide a preliminary estimated value of the potential sites. The appraiser gathers market data, comparable sales data, and tax assessment records during the site investigation visits. Only a limited appraisal or estimate of value is needed at this point. When the site is selected officially and GSA is ready to begin negotiations, then the team contracts for a fee appraisal, based on title, boundary/topography/utility surveys, and environmental studies (e.g., Phases I, II, III,) that are provided to the appraiser. The government is required to offer “just compensation” for the property, which is to be no less than the approved appraised fair market value (AFMV).