[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR2201.3-2]



[Page 65]

 

                    TITLE 43--PUBLIC LANDS: INTERIOR

 

    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

 

PART 2200_EXCHANGES: GENERAL PROCEDURES--Table of Contents

 

              Subpart 2201_Exchanges_Specific Requirements

 

Sec.  2201.3-2  Market value.



    (a) In estimating market value, the appraiser shall:

    (1) Determine the highest and best use of the property to be 

appraised;

    (2) Estimate the value of the lands and interests as if in private 

ownership and available for sale in the open market;

    (3) Include historic, wildlife, recreation, wilderness, scenic, 

cultural, or other resource values or amenities that are reflected in 

prices paid for similar properties in the competitive market;

    (4) Consider the contributory value of any interest in land such as 

minerals, water rights, or timber to the extent they are consistent with 

the highest and best use of the property; and

    (5) Estimate separately, if stipulated in the agreement to initiate 

in accordance with Sec.  2201.1 of this part, the value of each property 

optioned or acquired from multiple ownerships by the non-Federal party 

for purposes of exchange, pursuant to Sec.  2201.1-1 of this part. In 

this case, the appraiser shall estimate the value of the Federal and 

non-Federal properties in a similar manner.

    (b) In estimating market value, the appraiser may not independently 

add the separate values of the fractional interests to be conveyed, 

unless market evidence indicates the following:

    (1) The various interests contribute their full value (pro rata) to 

the value of the whole; and

    (2) The valuation is compatible with the highest and best use of the 

property.

    (c) In the absence of current market information reliably supporting 

value, the authorized officer may use other acceptable and commonly 

recognized methods to determine market value.