# Specifications for the GSA Analytical Narrative Appraisal Report

General -- In the preparation of this report, the Contractor shall
follow current professional appraisal practices giving consideration to
three approaches to value, namely, the Cost, Income Capitalization and
Sales Comparison Approaches, unless otherwise specified in this
contract. Should certain approaches or requirements covered in these
specifications not be applicable to the assignment, the contractual
obligation can be fulfilled by identifying that approach or requirement
together with a brief explanation for its omission (i.e., an appraisal
involving land valuation only). Supplementary specifications will be
furnished as necessary in the appraisal of specific properties.

Format -- the report shall be bound, in book fashion, in the left
margin, in a durable cover with the GSA identification of the property
including the control number on the face thereof. The paper shall be a
good grade of bond of size 8 and one half by 11 inches. All pages shall
be numbered consecutively, including all exhibits, and each important
heading shall be shown in the Table of Contents. To provide uniformity
for GSA files, the text shall be divided into four parts as outlined
below.

**Part One -- Introduction.**

1.  Title Page. This shall include (a) the name, street address and GSA
    control number of the property, (b) the name of the individual
    making the report, and (c) the effective date of the appraisal.

2.  Table of Contents.

3.  Letter of Transmittal.

4.  Photographs -- Pictures shall show at least the front elevation of
    the major improvements, plus any unusual features. There should also
    be views of the area, as appropriate, including properties abutting
    and directly opposite. When a large number of buildings are
    involved, including duplicates, one picture may be used for each
    type. Views of the comparables should be included. Except for the
    overall view, photographs may be bound as pages facing the
    discussion or description which the photographs concern. All graphic
    material shall include captions. Each copy of the report shall
    contain original color photographs.

5.  Statement of limiting conditions and assumptions.

6.  References -- if preferred, may be shown with applicable approach.

**Part Two -- Factual Data.**

7.  Purpose of the Appraisal. This shall include the reason for the
    appraisal, a definition of all values required, and a description of
    the property rights appraised.

8.  Legal description. This description shall be so complete as to
    properly identify the property appraised. If lengthy, it should be
    referenced and included in Part four.

9.  Area, City, and neighborhood data. This data should include such
    information as it affects the appraised property together with the
    appraiser's conclusions as to significant trends.

10. Property data --

    a.  Site -- Describe the soil, topography, public or private access
        and utilities, mineral deposits, easements, etc. A statement
        must be made concerning the existence or nonexistence of mineral
        deposits having a commercial value.

    b.  Improvements -- This description may be by narrative or schedule
        form and shall include dimensions, cubic and/or square foot
        measurements, and where appropriate, a statement of the method
        of measurement used in determining rentable areas such as full
        floor, multitenancy, etc.

    c.  Equipment -- This shall be described by narrative or schedule
        form and shall include all items of equipment, including a
        statement of the type and purpose of the equipment and its state
        of cannibalization. The current physical condition and relative
        use and obsolescence shall be stated for each item or group
        appraised, and whenever applicable, the repair or replacement
        requirements to bring the property to usable condition. Any
        related personality or equipment, such as tenant trade fixtures,
        which are not attached or considered part of the realty, shall
        be separately inventoried. Where applicable, these detachable or
        individually owned items shall be separately valued.

    d.  History -- State briefly the purpose for which the improvements
        were designed, dates of original construction and major
        renovation and/or additions; include, [for privately owned
        property]{.underline}, a five-year record as to each parcel, of
        all sales and, if possible, offers to buy or sell, and recent
        lease(s); if no sale in the past five years, include a report of
        the last sale.

    e.  Assessed Value and Annual Tax Loan. Include the current
        assessment and dollar amount of real estate taxes and indicate
        the tax year together with the market level of taxes for the
        property on date of appraisal. Future trends or prospective
        changes in the level of taxes should be discussed. If the
        property is not taxed, the appraiser shall estimate the
        assessment, state the tax rate and give the dollar amount of the
        tax estimate.

    f.  Insurance -- Give the estimated rate per thousand and the annual
        cost of adequate insurance coverage (not necessarily present
        coverage).

    g.  Zoning -- Describe the zoning for subject and comparable
        properties (where Government owned, state what zoning might
        reasonably be anticipated under private ownership), and if
        rezoning is imminent, discuss further under item eleven.

**Part Three -- Analyses and Conclusions.**

11. Analysis of highest and best use. The report shall include an
    in-depth analysis of the highest and best use that can be made of
    the property (land and improvements and where applicable, machinery
    and equipment) for which there is a current market. The valuation
    shall be based on this use, which should be found to be physically
    possible, legally permissible, financially feasible, and maximally
    productive. The reasoning behind the appraiser's conclusion shall be
    fully explained.

12. Land value. The appraiser's opinion of the value of the land shall
    be supported by confirmed sales of comparable lands. Differences
    shall be weighed and explained to show how the sales indicate the
    value of the land being appraised. Adjustments should be made from
    the sales to the subject, either in dollar amounts or percentages
    for all applicable elements of comparison.

13. Value estimated by Cost Approach. This shall be in the form of
    computative data, arranged in sequence, beginning with reproduction
    or replacement cost, and shall state the source (book, page and date
    if a national service) of all figures used. The dollar amounts of
    physical deterioration and functional and external obsolescence, or
    the omission of same, shall be explained in narrative form. [This
    procedure may be omitted on improvements, both real and personal,
    for which only a salvage or scrap value is estimated.]{.underline}

14. Value estimate by income Capitalization Approach. This shall include
    adequate factual data to support each figure and factor used and
    shall be arranged in detailed form to show (a) estimated gross
    economic rent or income; (b) allowance for vacancy and credit
    losses; (c) an [itemized]{.underline} estimate of total expenses
    including reserves for replacement; and (d) net operating income.
    Capitalization of net income shall be at the rate prevailing for
    this type of property and location. The capitalization technique,
    method and rate used shall be explained in narrative form supported
    by a statement of sources of rates and factors.

15. Value Estimate by Sales Comparison Approach. This shall include
    adequate factual data. All sales used shall be confirmed by the
    buyer, seller, broker, or other persons having knowledge of the
    price, terms and conditions of sale. Each comparable shall be
    weighed and explained in relation to the subject property to
    indicate the reasoning behind the appraiser's value estimate from
    this approach. Adjustments should be made from the sales to the
    subject, either in dollar amounts or percentages for all applicable
    elements of comparison.

16. Interpretation and correlation of Estimates. The appraiser shall
    interpret the foregoing estimates and shall state his reasons why
    one or more of the conclusions reached in items (13), (14), and (15)
    are indicative of the market value of the property.

17. Certification. This shall include statement that Contractor has no
    undisclosed interest in property, that he has personally inspected
    the premises, date and amount of value estimate, etc.

**Part Four -- Exhibits and Addenda.**

18. Location map(s).\* (Within the State, City, and/or area).

19. Plot plan and tax map. \*

20. Floor plans \* (When needed to explain the value estimate).

21. Comparative date map. (Show geographic location of the appraised
    property and the comparative data analyzed).

22. Detail of the Comparative Date. (Photograph and plot or tax map
    should be included for each comparable.)

23. Other pertinent exhibits.

24. Qualifications. (Of all appraisers and/or Technicians contributingt
    to the report.

\* All maps and plans may be bound as facing pages opposite the
description, tabulation, or discussions they concern.