BPW Advisory 2005-3 Real Property - Appraisals When Disposing or Acquiring

BPW Advisory 2005-3 Real Property - Appraisals When Disposing or Acquiring

Purpose:  To instruct agencies concerning the real property appraisals that must be obtained when requesting the Board of Public Works to approve disposing of or acquiring interests in real property.

Background: The Board of Public Works approves the disposal of State real property.  In most cases, the Board approves the State’s acquisition of real property.  This policy applies to real property transactions that must be presented to the Board of Public Works for approval.

Policy:
1.  When an agency seeks Board of Public Works approval to dispose of real property, the agency must comply with the following at a minimum:
  • Anticipated value over $100,000
  • Obtain two independent appraisals 
  • Anticipated value between $25,000 and $100,000
  • Obtain one independent appraisal.
  • Have a qualified agency staff appraiser review the independent appraisal.
  • Document the staff review. 
  •  Anticipated value under $25,000
  • Have a qualified agency staff appraiser appraise the property.
  • Have a qualified agency staff appraiser review the staff appraisal.
  • Document the staff review.

2.  When an agency seeks Board of Public Works approval to acquire real property from a private owner, the agency must obtain two independent appraisals.

3.  The Action Agenda Item must document the required appraisals and reviews in an Appraisals Field that sets forth the appraiser, the appraisal date, and the appraisal amount.  In general, appraisals must be dated within one year of the Action Agenda Item date. For each appraisal an agency cites that is more than one year old, the agency must explain in the Remarks Field why the Board should rely on the appraisal.