5409.12_50
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FOREST SERVICE HANDBOOK
NATIONAL HEADQUARTERS (WO)
WASHINGTON, DC
FSH 5409.12 – APPRAISAL HANDBOOK
CHAPTER 50 – APPRAISAL REPORTS
Amendment No.: 5409.12-2005-6
Effective Date: February 23, 2005
Duration: This amendment is effective until superseded or removed.
Approved: GLORIA MANNING
Associate Deputy Chief
Date Approved: 01/31/2005
Posting Instructions: Amendments are numbered consecutively by Handbook number and
calendar year. Post by document; remove the entire document and replace it with this
amendment. Retain this transmittal as the first page(s) of this document. The last amendment to
this Handbook was 5409.12-2005-5 to 5409.12_40.
New Document
5409.12_50
6 Pages
Superseded Document(s) by
Issuance Number and
Effective Date
!5409.12,5 Contents
(Amendment 5409.12-92-1, 08/03/1992)
5409.12,5
(Amendment 5409.12-92-1, 08/03/1992)
1 Page
12 Pages
Digest:
This chapter has been recoded from a 1-digit chapter to a 2-digit chapter.
51 – Requires that self-contained appraisal reports comply with standards in the Uniform
Appraisal Standards for Federal Land Acquisitions and the Uniform Standards of Professional
Appraisal Practice.
51.1 – Provides certification language to include in a self-contained appraisal report.
WO AMENDMENT 5409.12-2005-6
EFFECTIVE DATE: 02/23/2005
DURATION: This amendment is effective until superseded or removed.
5409.12_50
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FSH 5409.12 – APPRAISAL HANDBOOK
CHAPTER 50 – APPRAISAL REPORTS
Digest--Continued:
51.2 – Adds requirements to include in the addenda section of a self-contained appraisal.
52 – Provides direction for use of a summary appraisal report.
53 – Provides direction that a restricted use appraisal report should not be used.
WO AMENDMENT 5409.12-2005-6
EFFECTIVE DATE: 02/23/2005
DURATION: This amendment is effective until superseded or removed.
5409.12_50
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FSH 5409.12 – APPRAISAL HANDBOOK
CHAPTER 50 – APPRAISAL REPORTS
Table of Contents
51 - SELF-CONTAINED APPRAISAL REPORTS.......................................................... 4
51.1 – Certification ..................................................................................................................... 4
51.2 – Addenda ........................................................................................................................... 5
52 - SUMMARY APPRAISAL REPORTS ....................................................................... 5
53 - RESTRICTED USE APPRAISAL REPORTS .......................................................... 6
WO AMENDMENT 5409.12-2005-6
EFFECTIVE DATE: 02/23/2005
DURATION: This amendment is effective until superseded or removed.
5409.12_50
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FSH 5409.12 – APPRAISAL HANDBOOK
CHAPTER 50 – APPRAISAL REPORTS
Appraisals are mandatory for all purchases, exchanges, or disposals of land or interests in land,
and authorizations for use of National Forest System land except for acquisitions under appraisal
waiver authority, donations, interchanges under the Small Tracts Act, exchanges at
approximately equal value under the Federal Land Exchange Facilitation Act, and certain
interchanges and transfers involving other Federal agencies (FSM 5410.3.)
Consult FSM 5411 for policy regarding agreements for joint appraisals with landowners.
Disclose appraisal information in accordance with FSM 6270 and FSM 5412.
51 - SELF-CONTAINED APPRAISAL REPORTS
Self-contained appraisal reports are appropriate for complex appraisal assignments. Selfcontained appraisal reports shall comply with the Uniform Appraisal Standards for Federal Land
Acquisitions (UASFLA) and the Uniform Standards of Professional Appraisal Practice
(USPAP).
51.1 – Certification
Include the following paragraphs on the certification page of a self-contained appraisal report:
I have made a personal inspection of the appraised property which is
the subject of this report and all comparable sales used in developing
the estimate of value. The date(s) of inspection was
, and the
method of inspection was
. (If more than one
person signs the report, this certification must clearly specify which
individuals did and which individuals did not make a personal
inspection of the appraised property.)
My analysis, opinions, and conclusions were developed, and this
report has been prepared, in conformity with the "Uniform Appraisal
Standards for Federal Land Acquisitions"; the "Uniform Standards
of Professional Appraisal Practice", along with the Code of
Professional Ethics and Standards of Professional Practice of the
organizations to which I belong, as well as State certification
requirements where the appraised property is located or as a result of
assumed reciprocity with the State in which I am certified or as
provided for by the Office of Management and Budget Bulletin No.
92-06, dated March 16, 1992, that provides that Federal employees
need only be licensed or certified in one State or territory to perform
real estate duties as Federal employees in all States or territories.
WO AMENDMENT 5409.12-2005-6
EFFECTIVE DATE: 02/23/2005
DURATION: This amendment is effective until superseded or removed.
5409.12_50
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FSH 5409.12 – APPRAISAL HANDBOOK
CHAPTER 50 – APPRAISAL REPORTS
51.2 – Addenda
Include the following in the Addenda section of a self-contained appraisal report:
1. A full legal description of the property appraised, if not shown in the narrative section
of the report.
2. A copy of the preliminary title report for non-Federal land and a statement of interest
(status report) for the Federal land, as applicable.
3. Additional data such as documents, charts, and other information pertinent to the
valuation and referred to in the body of the appraisal. This data may document or illustrate a fact
about which a review appraiser would require more information, and may include a copy of:
a. The easement or other deed.
b. Technical reports from specialists, such as, the timber cruise summary signed by
the timber cruiser, the road plan signed by the engineer, and a mineral report(s).
4. A summary or list of the qualifications of each appraiser who contributed to the report.
The qualifications must demonstrate the appraiser's capability to make such an appraisal.
52 - SUMMARY APPRAISAL REPORTS
The purpose of the summary appraisal is to match the report to the complexity of the appraisal
assignment. A summary appraisal report must adequately document the appraisal process and
comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and the
Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA).
Summary appraisal reports do not require in-depth documentation and presentation and are
appropriate for uncomplicated cases not likely to be appealed or litigated based on value. In
situations where a summary appraisal report has been prepared and the case is appealed or
litigated based on value, the appraiser shall complete a self-contained appraisal report, based
upon the summary appraisal report and other supporting documentation. Include the following
elements in a summary appraisal report:
1. A summary description of the real estate being appraised.
2. The real property interest being appraised.
3. The purpose, intended use, client, and intended users of the appraisal.
4. The definition of value to be estimated.
WO AMENDMENT 5409.12-2005-6
EFFECTIVE DATE: 02/23/2005
DURATION: This amendment is effective until superseded or removed.
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FSH 5409.12 – APPRAISAL HANDBOOK
CHAPTER 50 – APPRAISAL REPORTS
5. The effective date of the appraisal and the date of the report.
6. The extent of the process of collecting, confirming, and reporting data.
7. Assumptions, hypothetical conditions, and limiting conditions that affect the analysis,
opinions, and conclusions.
8. A summary of the information considered, the appraisal procedures followed, and the
reasoning that supports the analysis, opinions, and conclusions.
9. A summary of the appraiser's opinion of highest and best use of the real estate, when
such an opinion is necessary and appropriate.
10. Support for exclusion of any of the usual valuation approaches.
11. A summary of additional information that may be appropriate to show compliance
with, or clearly identify and explain permitted departures from, the specific guidelines of the
USPAP.
12. A signed certification that satisfies the requirements of the USPAP, UASFLA, and
section 51.1 of this handbook.
53 - RESTRICTED USE APPRAISAL REPORTS
A restricted use appraisal report is a written report prepared under Standards Rule 2-2c of the
Uniform Standards of Professional Appraisal Practice. Restricted use appraisal reports are
generally not suitable for Forest Service real property appraisal assignments due to requirements
of the Freedom of Information Act and, therefore, should not be used (FSM 5410.3--1(b)).