A right-of-way appraisal is completed for the purpose of acquiring real estate for public projects. This type of appraisal requires opinions of market value before and after project construction.
The scope of work focusses on the area of the property that is impacted by the project. Improvements located away from the acquisition may be outside the scope of work and not appraised.
The first appraisal is completed for the acquiring agency and is used to establish an offering price for the property to be acquired. The property owner can opt to have their own appraisal completed and be reimbursed for the cost of this second appraisal.
The appraisal refers to portions of the property acquired for the project as the taking. A loss in market value to the remaining property is referred to as severance damage.
