3 Del. Admin. Code § 702-15.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 702-15.0 - Appraisals [3 Del.C. Section 916]

15.1 An offer to purchase a Forestland Preservation Easement shall be based upon one or more appraisal reports which estimate the full market value of the forestlands under its agricultural zoning designation and the forest-only value of the forestlands tract. Any appraisal obtained by the Foundation shall remain the property of the Foundation and may not be used by the property owner for tax purposes.

15.2 Subject to subsection 15.7 of this regulation, an appraisal to the extent possible shall be based primarily on an analysis of comparable sales.

15.3 The value of buildings or other improvements on the forestlands shall be excluded in determining the Forestland Preservation Easement value. Excluded from the value of the Forestland Preservation Easement shall be the acreage designated for residential use or seasonable dwelling use.

15.4 The appraiser shall be:

15.4.1 An independent, licensed real estate appraiser who is qualified to appraise a property for easement purchase. An appraiser shall be selected on the basis of experience, expertise and professional designation, and

15.4.2 A member of an organization which subscribes to the "Uniform Standards of Professional Appraisal Practice" published by the Appraisal Standards Board of the Appraisal Foundation, and shall follow their ethical and professional standards.

15.5 The appraiser shall supply a narrative report which contains information specified by the Foundation.

15.6 The appraiser shall provide the Foundation with paper and electronic copies of each appraisal report as determined by the Foundation.

15.7 The forest-only valuation shall be based on the property's capacity to produce timber through each soil type located on the property. The State Forester shall calculate annual timber production rates for each soil type and determine a five-year, rolling average of timber sale prices for the state. These values will produce an average annual income per acre for the property. This income value will then be capitalized to produce the forest-only valuation using a five-year, rolling average rate of return.

15.8 The Forestland Preservation Easement value is then calculated using the full market valuation appraisal and the forest-only valuation.

3 Del. Admin. Code § 702-15.0

24 DE Reg. 860 (3/1/2021) (final)