901-2-09 Appraisals.

(A) Appraisals required under this section shall be conducted using either a points- based appraisal system or the comparable sales methodology.

(B) The points based appraisal system shall comply with the requirements set forth in 901.22 (D) of the Revised Code.

(1) The market value, farmland value, and agricultural easement value shall be based on an analysis of comparable sales, and shall be conducted in accordance with standards approved by the director. If the landowner intends on seeking federal tax benefits for a partial donation of the agricultural easement value, then the appraisal shall also be conducted by a qualified appraiser as defined under section 1.170a-13(c)(5) of internal revenue service code. 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 a acceptable to the director, and the appraisal report clearly describes the information considered, the appraisal procedures followed and the reasoning that supports the analyses, opinions and conclusions.

(2) The value of buildings and related site improvements on the application property tract will not be considered in determining the agricultural easement value.

(3) The appraiser selected by the director shall be a general real estate appraiser who is certified under Chapter 4763 of the Revised Code.

(4) The appraiser shall supply a minimum of three original copies of a self contained appraisal report which contains, at a minimum, the following information in the following format:

(a) Introduction.

(b) Letter of transmittal.

(d) A table of contents.

(e) A summary of salient facts and conclusions.

(f) The purpose of the appraisal.

(g) The definitions, including definitions of market value, farmland value and easement value.

(5) Description of property.

(a) A brief description of the area neighborhood.

(b) A description of the appraised property.

(i) A legal description.

(ii) Property data and zoning.

(iii) A brief description of improvements.

(iv) Color photos of subject property’s fields and improvements.

(v) Tax map or official map used for tax assessment purposes showing the subject property and its relationship to neighboring properties.

(vi) An aerial photograph of subject property showing boundaries, roads, driveways, building locations, rights of way and land use.

(vii) A map showing the location of the application property in a county or municipality.

(viii) Soils map showing property boundaries.

(6) Analyses and conclusions.

(a) An analysis of the highest and best use.

(b) The valuation methodology: market value.

(i) Comparable sales data, at least three comparable sales that are not more than two years old.

(ii) An adjustment grid, with the respective percentage of adjustment assigned to each comparable or each variable included, as well as a thorough and clear narrative description of adjustment variables and percentages.

(iii) A locational map of comparable sales showing the location of the application property. With respect to the comparables, a single locational map shall be submitted with respect to each county from which comparable sales are drawn.

(d) The valuation methodology: land value.

(i) Comparable sales data, at least three comparable sales that are not more than two years old.

(ii) An adjustment grid, with the respective percentage of adjustment assigned to each comparable for each variable included as well as a thorough and clear narrative description of adjustment variables and percentages.

(iii) A locational map of comparable sales showing the location of the application property with respect to the comparables. A single locational map shall be submitted with respect to each county from which comparable sales are drawn.

(e) The farmland value estimate.

(f) The agricultural easement value.

(g) An appendix containing a brief statement of the appraiser’s professional qualifications including experience with conservation easement appraisal, and a copy of the appraiser’s current certification under Chapter 4763 of the Revised Code.

(7) The appraiser shall supply information concerning comparable sales as follows:

(a) At least three comparable sales shall be used for estimating market value, farmland value, and agricultural easement value. If the appraiser cannot obtain sufficient comparable sales data within the same county as the application property, the appraiser may use comparable sales within twenty five miles of the property to be appraised. The use of comparable sales which require adjustment of fifty per cent or more is permitted only with the approval of the director.

(b) 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, estimated 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 application property. 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 standards approved by the director, approximate dollar values to adjustment shown on the adjustment grid.

(c) 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.

(d) 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.

(e) 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 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 development value.

(f) The appraiser shall set forth the reasons the farmland comparable sales are confined primarily to agricultural use. Examples of these reasons include:

(i) The application property has public or private land use restrictions.

(ii) The application property is within a flood plain or a wetland (in whole or in part).

(iii) The application property is landlocked, subject to additional easements, subject to restrictive zoning or has other physical attributes which limit its development capacity.

(g) The appraiser shall provide at least three originals of each report to the director which shall be bound with rigid covers.

(h) 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.

(i) If the easement acquisition includes building envelopes or retained rights, the report shall include a map of those areas, assign a specific acreage to the area to be placed under easement and include a discussion of the impact of these provisions on the valuation conclusion.

(j) The appraisal shall not be based on speculative development potential or hypothetical development scenarios. The appraised value shall be based on the subject property’s existing development rights and status (unimproved or improved with roads and utilities, approved for subdivision, or not approved for subdivision, etc.).

HISTORY: Eff 2-1-02; 2-21-2005

Promulgated Under: 119.03

Statutory Authority: 901.22(A)

Rule Amplifies: 901.22

R.C. 119.032 review dates: and 02/01/2007