Residential Property Report Template – Compensation Valuation under the Public Works Act 1981

Why a Template?

These Templates have been developed to:

Assist valuers to understand the valuation process for property acquired under the Public Works Act,

Ensure Valuers provide information in their valuation reports to enable good decision making,

Enable easier comparisons between valuation reports,

Ensure that the valuation reports comply with current Australia and New Zealand Valuations and Property Standards and International Valuation Standards.

The templates emphasise the obligation for valuations to be evidence based and require the Valuer to provide supporting comparable sales evidence for all stages of the valuation e.g. the ‘Before’ valuation, the ‘After’ valuation and the assessment of Injurious Affection (if any).

How to use this template

The report templates provide the recommended report format to be used for PWA acquisition work.

The structure is based on the ANZVTIP 13 and the IVS standards.

Valuers should endeavour to use the headings in the same order as the template and provide supporting commentary at least to the level of detail described in the template.

The valuation report is to be sent to the client as a secure PDF format (print to PDF). Do not print and scan the valuation report.

Valuers may tailor the template and add paragraphs and descriptions as appropriate depending on the subject property.

Valuers who wish to make any other changes should advise of the proposed changes in the Scope of Works.

Some valuation practices may have in-house templates or systems to assist in the report writing process. The template can be used in this manner.

All guarantees, disclosures compliance statements and disclaimers etc. are to be attached to the report.

Key to Text

Shaded text will need to be altered/or deleted to reflect the subject property.

The content and the wording of this report is an Example of a valuation complying with IVS.

The non-shaded text should be retained where possible as it is written to ensure compliance with the current valuation standards.

Note to Valuer – offer guidance as to the Transport Agency expected content and description under that particular heading.

Disclaimer

Please note that the examples used in this template (property description and comparable sales) are fictional. Whilst we have tried to be as realistic as possible, any resemblance to an existing property is purely coincidental.

REPORT SAMPLE TEMPLATE

VALUATION FOR COMPENSATION PURPOSES

Insert Photo
PROPERTY ADDRESS CLIENT DATE OF VALUE ESTIMATE NOR #

VALUATION SUMMARY OR EXECUTIVE SUMMARY

(Insert from Company’s Template)

File No.

Date

Client

Landowner

Property Address

Instructed By

We refer to the written instruction from company and agreed Scope of Works of date.

We confirm that our report complies with the instructions received and Scope of Works, subject to the valuation assumptions detailed in this report.

Purpose of Valuation

State here the type of valuation requested e.g. a compensation valuation under Section 62 Public Works Act 1981 for total or partial acquisition and include if you have been requested to additional assessments such as a rental assessment, business loss, disturbance etc.

Date of Inspection

Date of Valuation

Land Area (To Be Acquired)

Brief Property Description

Example - The subject property comprises a three- bedroom brick veneer dwelling built in 1952 on an irregular shaped site in the Edendale suburb of Hamilton. While the section is of a size capable of being subdivided, the dwelling is built across both titles. The current use as a large residential property is considered to be the ‘highest and best’ use.

Valuation Assumptions

This executive summary must be read in conjunction with the full valuation report attached herein. All comments, exclusions and limitations contained in the full report relate directly to this executive summary. No part of this report should be read in isolation.

This assessment is made on the basis of and subject to certain assumptions which are noted as follows:

Examples -

Our compensation assessment has been assessed for the specific purpose of compensation under the Public Works Act 1981 and no responsibility is accepted in the event that this report is used for any other purpose.

Our assessment addresses the Market Value of the property subject to the existing tenancy arrangements.

We have assessed market value under the definition in IVS 2020, noting it varies slightly from the definition under the Public Works Act 1981. As our valuation must be under the Public Works Act 1981, we confirm this minor departure from IVS 2020.

We assume the boundary fencing will be reinstated by the New Zealand Transport Agency (Transport Agency), and our compensation assessment is made on this basis.

The valuation is based on the Land Requirement Plans provided by the instructing party and the proposed access plans.

Valuation Approach

Market Approach, using Direct Comparison and ‘Before and After’ approach to Valuation.

Extent of Inspection

Nature and Source of Information Relied Upon

See Section 1.9

Valuation Summary

We assess the Compensation (including chattels), for the total property/partial acquisition of the required land to be:

Compensation	$	,000

Apportionment of Compensation

Delete if valuation is for total purchase

Land and Improvements (GST Inclusive, if any)	$	,000

Injurious Affection	$	,000

Compensation	$	,000

Less Betterment	$	,000

Total Compensation	$	,000

Valuer

Company

Contact Details

DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT

(Insert from Company’s Template)

Valuers to insert clauses that comply with IVS 103 reporting e.g.

Restrictions on Use, Distribution or Publication.

Market Movement.

Valuers Interest.

Market Value Definitions.

Confirmation that the valuation has been undertaken in accordance with the IVS and Australia and New Zealand Valuation and Property Standards, in particular Australia and New Zealand Valuation Technical Information Paper 13 for Compensation and Compulsory Acquisition (and Resource Pack).

Identification and status of the Valuer.

Identification and status of the Peer review Valuer.

TABLE OF CONTENTS

VALUATION SUMMARY OR EXECUTIVE SUMMARY	3

DISCLAIMERS, LIMITATIONS AND COMPLIANCE STATEMENT	5

TABLE OF CONTENTS	6

1.0	Introduction/Scope of Works	7

2.0	Legal Description	10

3.0	Rating Valuation	11

4.0	Resource Management	12

5.0	Resource Consent	12

6.0	Situation and Locality	13

7.0	Site Description	14

8.0	Improvements Description	15

9.0	Proposed Acquisition	17

10.0	Compensation	18

11.0	Valuation Approach and Reasoning	20

12.0	General Market Discussion	22

13.0	Sales Evidence	23

14.0	Valuation Process	27

15.0	Valuation (Total Acquisition)	28

16.0	Valuation Conclusion (Partial Acquisition)	29

17.0	Assessment of Injurious Affection (Impact of the Work on the Retained Land)	30

18.0	Assessment of Betterment	31

19.0	Compensation Assessment	32

20.0	Concluding Remarks	33

VALUATION REPORT

Introduction/Scope of Works

Valuation Standards and Guidance Notes

We certify that this valuation complies with IVS, NZIV Code of Ethics, PINZ Code of Ethics and Rules of Conduct, appropriate PINZ Valuation Standards, Guidance Notes (GN) and Technical Information Papers (TIPS). This valuation has been undertaken in accordance with the IVS Operative 31 January 2020. Particular standards we have referred to include:

IVS2020	:	Framework

IVS 101	:	Scope of Work

IVS 102	:	Investigations and Compliance

IVS 103	:	Reporting

IVS 104	:	Bases of Value

IVS 105	:	Valuation Approaches and Methods

IVS 400	:	Real Property Interests

ANZVTIP 11 :	Valuation Procedures – Real Property

ANZRPGN 1 :	Disclaimer Clauses and Qualification Statements

ANZRPGN 4 :	Methods of Measurement

ANZVTIP 13:	Valuations for Compensation and Compulsory Acquisition

Identification and Status of the Valuer

The Registered Valuer is ………………….

The Valuer is in a position to provide an objective and unbiased valuation.

The Valuer has no material connection or involvement in the valuation or party commissioning the valuation.

The Valuer is competent to undertake the valuation.

The Valuer holds a current Annual Practising Certificate.

The Company holds indemnity insurance appropriate for the value level assessed in the report and can confirm the Registered Valuer signing the report is covered by this policy.

Client

The valuation is strictly confidential to the party to whom it is addressed being …………… and is prepared solely for the purpose which it refers to be a valuation for ………………. No responsibility accepted to other persons other than the party to whom the valuation report is addressed.

Purpose of the Valuation

To assess the market value for …………………….

Identification of the Asset

Situated at ….

Basis of Value

Market Value

The IVS (effective 31 January 2020) defines ‘Market Value’ as:

‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’

Valuation Dates

Date of Inspection:

Date of Valuation:

Extent of Investigation

We have inspected the readily accessible places.

Nature and Source of the information Relied Upon

Examples-

Council Property File

Land Information Memorandum (LIM) report

Asbestos Report

Land Contamination Report

Building Survey Report

Plans showing the proposed acquisition prepared by xxxx, dated xxxx (Reference: xxxx).

Sales data has been gathered from RPNZ, Real Estate Institute statistics and through real estate agents.

Assumptions and Special Assumptions

Our assessment is made for the specific purpose of compensation under the Public Works Act 1981 and no responsibility is accepted in the event of this report being used for any other purpose.

Restrictions on Use, Distribution or Publication

The report is not to be relied upon by any other person or for any other purpose other than those parties identified under ‘1.3 Client’. We accept no liability to third parties, nor do we contemplate that this report will be relied upon by third parties. We invite other parties who may come into possession of this report to seek our written consent to them relying on this report. We reserve the right to withhold our consent or to review the contents of this report in the event that our consent is sought.

Legal Description

Record of Title (1) (Insert from Company’s template)

Delete the number when there is only one title
Identifier
Tenure
Legal Description/Appellation
Registered Proprietor
Land Area of Affected Property
Interests Registered on Title
The above (non-financial) registrations are noted and are not considered to materially affect the value of the property.

Where the registrations on the title affect the market value/saleability of the subject property, the valuer is to provide additional details. The valuer should comment on the non-financial registrations and encumbrances only.

Comment specifically on existing Compensation Certificates registered on the title at the date of valuation.

Rating Valuation

Date of Assessment
Roll Number
Land Value	$
Value of Improvements	$
Capital Value	$

Resource Management

Territorial Authority	(Insert from Company’s template)
Zoning
Permitted Use
Development Controls
Heritage (if applicable)
Designations
Comment on the range of permitted activities, the application of the District Plan to the subject property and any possible effect on value. A long narrative of all the permitted activities in the zone is not required, unless the subject property’s highest and best use is not the current use.

Resource Consent

If the property is subject to a Resource Consent, please provide a full description of the details of what the resource consent pertains to and the effect on the value of the subject property of the Resource Consent.

Situation and Locality

Location (Insert from Company’s template)

City
Situation
Locality
Amenities
Surrounding development
Saleability of the area

Insert map to show surrounding location and position of subject property.

Site Description

site description (Insert from Company’s template)

Land use
Land area and shape
Contour and site development
Aspect and view
Services
Access

Insert aerial photo of the subject property

Environmental Factors

Example - There does not appear to be any evidence of flooding, land subsidence or landslip and to the best of our knowledge any additional proposed road works or high tension power lines which may affect the saleability of the property. Council records have (or have not) been searched to check the site history in relation to: Contamination (of land or buildings) e.g. asbestos, ground contamination. Seismic Rating (comment if available, if not, assumptions made). Weathertightness issues. Other details on Council files which may impact value such as status of Code Compliance Certificate.

Improvements Description

To follow is a brief description of the improvements and their condition as at the date of inspection. (Insert from Company’s template)

Dwelling

Type
Floor Area (noting basis of measurement).
Year Built (approx.) plus additions
Levels
Insert photographs of the main building (front and rear views).

Construction

Foundations
Floor
External cladding
Joinery
Roof
Internal linings

Internal Layout (including fixtures and fittings)

Kitchen
Dining
Lounge
Bedrooms
Bathroom(s)
Laundry
Hallway
Heating
Chattels
Insert photographs of the kitchen and at least two other rooms to provide a good indication of the quality of the accommodation provided.

Other Buildings

Garage/Carport
Other
Insert photographs of the Other Buildings.

Other Improvements

Site Development
Deck/Terrace
Other
Insert photographs of the Other Improvements.

Condition and Repair

Make a general comment about the condition (fair, average, good or new) and note any obvious outstanding maintenance. Review and comment on any building survey reports made available.
Where deferred maintenance exists and remedial work is required to preserve the value of the asset, please note this, and provide an estimate (a range is acceptable) of remedial costs in the separate addendum as requested in the Scope of Works.

Proposed Acquisition

Description of Project

Briefly describe the project for which the acquisition forms part and include a map showing the location of the subject property in relation to the project.

Description of Proposed Acquisition

Describe the land to be acquired, dimensions etc.

Land Requirement Plan

(inserted here).
Delete 10.2.1 if the acquisition is for the entire property.

Impact of Acquisition on Property

Describe the impact of the project when completed on the retained land. This needs to include the distance of the proposed work to any building on the retained land. Describe any mitigation work proposed and the effect of this work in relation to the retained land. If the impact of the project injuriously affects the retained land i.e. depreciation in value caused by the operation of the public work on completion, describe the factors that contribute to the injurious affection e.g. increased traffic noise, loss of privacy etc. Similarly, if the impact of the project on the retained land is positive, or creates betterment, then the factors that contribute to the betterment are to be described.

Improvements on Land to be Acquired

Describe the improvements that form part of the property that is being acquired.

Compensation

General Principles

It is an established principle of common law that no person should be deprived of their land/property without due process and fair compensation. Recognised principles which have arisen out of compensation cases include the following: Principle of Equivalence which basically is to place the owner in a no better/no worse situation to that in which the owner was prior to the notification or taking for the public work. This is to incorporate not only the intrinsic value of the land to be taken itself but also any additional loss in value to the residue property as a result of the land acquisition or the effects of the public work. The latter is commonly referred to as Injurious Affection. Principle of Liberality is that such cases are to be resolved in the favour of the dispossessed owner, however this does not mean that the owner should be paid more than the actual loss or more than a fair assessment of the amount of his actual loss. It stems from the Principle of Compensation law that the owner is entitled to be put back in the same position in respect of his capital as he was before taking. Principle of Natural Justice is that an owner is entitled to know exactly what their rights are and be well informed. Where the value of the land has increased or reduced by the work or the prospect of the work, this change in value should be disregarded. Properties are to be valued in accordance with their highest and best use. Entitlement to compensation is set out in Part V of the Public Works Act 1981 (PWA) and provides that affected landowners are entitled to "full compensation" so that they are left in a no better or worse position, than they were before the public work commenced. This means that landowners will not be deprived of their land without fair compensation but will not be compensated so as to make a profit from the public work. The following Sections of the Public Works Act 1981(PWA) relate to Valuation matters: Section 60 - Basic entitlement to compensation Section 61 - Exceptions to rights to compensation Section 62 - Assessment of Compensation Section 64 - Compensation for Injurious Affection to be assessed by reference to the whole work Section 65 - Compensation for land for which no general demand exists

Statute

Section 62(1)(b) states the amount of compensation payable is “that amount which the land if sold in the open market by a willing seller to a willing buyer on the specified date might be expected to realise, unless (i) the assessment of compensation relates to any matter which is not directly based on the value of land and in respect of which a right to compensation is conferred under this or any other Act; or (ii) only part of the land of an owner is taken or acquired under this Act and that part is of a size, shape, or nature for which there is no general demand or market, in which case the compensation for such land and the injurious affection caused by such taking or acquisition may be assessed by determining the market value of the whole of the owner's land and deducting from it the market value of the balance of the owner's land after the taking or acquisition.” Section 62(1)(c) states “where the value of the land taken for any public work has, on or before the specified date, been increased or reduced by the work or the prospect of the work, the amount of that increase or reduction shall not be taken into account..” Therefore, the value of the land taken (either the full site or a partial acquisition) must be assessed as if the work was not proposed or not in existence.

Valuation Approach and Reasoning

Valuation Approach(s)

Discuss the reasons for adopting the valuation approach you have used and reasons for not using the alternative (if any) approaches. Greater reliance should be placed on actual inputs e.g. prices achieved for similar properties; actual cash flows generated by the property. Assumed inputs may be relevant if the actual inputs are less reliable e.g. out of date costs.

Note to Valuer - Delete paragraphs 11.2 – 11.4 if the valuation is for total purchase.

Section 62(1)(b) of the PWA states the amount of compensation payable is “that amount which the land if sold in the open market by a willing seller to a willing buyer on the specified date might be expected to realise, unless …only part of the land of an owner is taken or acquired under this Act and that part is of a size, shape, or nature for which there is no general demand or market, in which case the compensation for such land and the injurious affection caused by such taking or acquisition may be assessed by determining the market value of the whole of the owner's land and deducting from it the market value of the balance of the owner's land after the taking or acquisition.” This approach is known as the ‘Before and After’ valuation approach.

‘Before’ and ‘After’ Valuation Approach

The value of the land to be acquired is assessed as the difference between the ‘Before’ valuation and the ‘After’ valuation. This assesses the compensation for the loss of land and improvements on the land taken, ignoring the proposed work. The ‘Before’ valuation is “that amount which the land if sold in the open market by a willing seller to a willing buyer on the specified date might be expected to realise”. Comparable sales of vacant and improved properties have been used to assess this amount. The ‘After’ valuation is the amount which the retained land (after the acquiring of the required land) if sold in the open market by a willing seller to a willing buyer on the specific date might be expected to realise and, again, disregarding the prospect of the proposed work. Therefore the ‘After’ valuation is of a smaller property in the exact same location and situation as the ‘Before’ property.

Effect on Retained Property – Injurious Affection/Betterment

Injurious Affection

Injurious Affection is assessed by valuing the retained land (smaller parcel etc.) on completion of the works and comparing it to the value of the retained land, taking into account the market influence of the prospect of work depending on the state of the project/proposed project at the time of the valuation. This has required reference to sales of properties in a location that reflects the location of the subject property on completion of the works, e.g. busy, multi-lane road with high traffic volume. Such sales provide an indication as to the permanent affect the works have on the retained property and include noise, possible poorer access etc. It must be noted that Injurious Affection can also apply to ‘other land’ of the claimant even if land for a Public Work was not directly taken e.g. a rear title owned by the claimant suffers Injurious Affection by the taking of land from a front title that includes right of way access to the rear title.

Betterment

Section 62(1)(e) states: The Tribunal shall take into account by way of deduction from that part of the total amount of compensation that would otherwise be awarded on any claim in respect of a public work that comprises the market value of the land taken and any injurious affection to land arising out of the taking, any increase in the value of any land of the claimant that is injuriously affected, or in the value of any other land in which the claimant has an interest, caused before the specified date or likely to be caused after that date by the prospect of the work: And 62(1)(f) The Tribunal shall take into account, by way of deduction from the total amount of compensation that would otherwise be awarded, any increase in the value of the parcel of land in respect of which compensation is claimed that has occurred as a result of the exercise by the New Zealand Transport Agency of any power under Section 91 of the Government Roading Powers Act 1989. The amount of Betterment is the increase in value between the ‘After’ value of the subject property, ignoring the project and the value of the retained property having regard to the presence of the project. It must be noted that Betterment also includes any increase in the value caused by the project of any other land in which the claimant has an interest.

No Effect on Property

Example - The effect of the proposed Works on the subject property is considered to be Nil. The subject property is already on a busy road with similar levels of visibility, accessibility and road noise. The exiting road is being widened slightly and it is considered that the reduction in size and the effect of the completed Works will have cause no further loss in value to the subject property.

General Market Discussion

Please comment on general market trends, possible evidence of changes in market trends, observations on reported listing periods and movements thereof. The general market situation is to be related to the market of the subject property. More specific trends in the localised area of the subjects, and an overview of market conditions in relation to the subject property and discuss factors that may influence the saleability of the property in the reasonably foreseeable future. Likely selling period required to achieve the valuation.

Sales Evidence

Comparable Sales of Vacant Land (Insert from Company’s template)

‘Before’ Valuation (Ignoring the Work)

Delete this heading if valuation is for total purchase. In some localities and/or situations comparable sales may not relate to the subject property both in the ‘Before’ scenario and in the ‘After’ scenario or there may be a paucity of sales, therefore comment as such and note the comparability in the Sales Reconciliation Table. However, in a market of larger scale, where sales are regularly recorded, the Valuer must provide sales evidence and analysis (both improved and vacant land sales) to support both the ‘Before’ and ‘After’ valuations for the subject property. Please rank the sales in ascending order of sale price, lowest to highest.

After’ Valuation (Ignoring the Work)

Delete this heading if valuation is for total purchase. Please rank the sales in ascending order of sale price, lowest to highest.

Sales Reconciliation Table

Sale No.	Address	Sale date	Sale price	Land area (m²)	Comparability ‘Before’ ‘After’
‘Before’
1.
2.
3.
‘After’
1.	I
2. 3.

Vacant Land Sales Summary

Discuss the sales considered the most comparable to the subject property and why, plus the value range that is indicated for the subject property in all scenarios.

Comparable Sales of Improved Properties

‘Before’ Valuation (Ignoring the Work)

Delete this heading if valuation is for total purchase. In some localities and/or situations comparable sales may not relate to the subject property both in the ‘Before’ scenario and in the ‘After’ scenario or there may be a paucity of sales, therefore comment as such and note the comparability in the Sales Reconciliation Table. However, in a market of larger scale, where sales are regularly recorded, the Valuer must provide sales evidence and analysis (both improved and vacant land sales) to support both the ‘Before’ and ‘After’ valuations for the subject property. Please rank the sales in ascending order of sale price, lowest to highest.
1.
2.
3.

‘After’ Valuation (Ignoring the Work)

Delete this heading if valuation is for total purchase. Please rank the sales in ascending order of sale price, lowest to highest.
1.
2.
3.

Sales Reconciliation Table

Sale No.	Address	Sale date	Sale price	Land area (m²)	Comparability ‘Before’ ‘After’
‘Before’
1.
2.
3.
‘After’
1.
2. 3.

Improved Sales Summary

Discuss the sales considered the most comparable to the subject property and why, plus the value range that is indicated for the subject property in all scenarios.

Comparable Sales for Retained Land (including impact of work)

Delete this heading if valuation is for total purchase. The following sales should represent the situation of the subject property taking into account the proposed work. Where possible, include vacant land sales that represent the situation on completion of the proposed work.

Sales Reconciliation Table

Sale No.	Address	Sale date	Sale price	Land area (m²)	Comparability
1.
2.
3.

Valuation Process

The recommended process for assessing compensation for a partial acquisition complies with the following steps: Market value of owner’s total interest ignoring the proposed work (the ‘Before’ valuation). Market value of the owner’s interest after the taking of the land (retained land) but ignoring the proposed work (the ‘After’ valuation). Compare the ‘Before’ and ‘After’ valuations to assess the market value of the land being acquired. Assess the impact of the project on the retained land i.e. injurious affection (damage) or betterment (enhancement) by comparing the market value of the retained land including the impact of the project to the market value of the retained land ignoring the work (para. 2 above). The above described process is recommended to provide a clear basis for understanding the impact of the project on the retained land. For an acquisition of a whole property, the market value is the fair market value of the land as described in the Act – Section 62(1)(b).

Valuation (Total Acquisition)

Market Value (Total Purchase Ignoring the Work)

Example - Residential dwelling on 1000m² site

Land Value
[land area] 1000m²	$600,000
Value of Improvements	$390,000
Chattels	$ 10,000
Total Value of Improvements	$400,000	say	$400,000
Market Value (GST incl. if any)	$1,000,000

Valuation Conclusion (Partial Acquisition)

Delete this section if valuation is for a total purchase. If improvements form part of the area to be acquired, note the reduced value of improvements, which may be zero, in the ‘After’ valuation.

‘Before’ Valuation (Refer to 15.1)

Market Value (GST incl. if any)	$1,000,000

‘After’ Valuation (Retained Land Ignoring the Work)

Example - After - Residential dwelling on 800m² site

Land Value
[land area] 800m² at $600/m²	$480,000
Total Value of Improvements	say	$400,000
‘After’ Market Value (GST incl. if any)	$880,000

Valuation of Land to be Acquired

Market Value of Land to be Acquired (GST incl. if any)	(Difference 16.1 and 16.2)	$120,000

‘After’ Valuation (Including Impact of the Work)

Example - After - Residential dwelling on 800m² site

Land Value
[land area] 800m²	$384,000
Value of Improvements	$390,000
Chattels	$ 10,000
Total Value of Improvements	$400,000	say	$400,000
Market Value of Retained Land
(including impact of work allowing for injurious affection only, but excluding betterment)	$784,000

Assessment of Injurious Affection (Impact of the Work on the Retained Land)

Delete this section if valuation is for a total purchase.
With reference to analysis of sales of properties that are comparable to the subject property on completion of the work, we have assessed the Injurious Affection of the work on the retained land, (and other land of the claimants that is affected by the acquiring of the described land), as follows:
Market Value of Retained Land (ignoring the work)	$880,000
(copied from 16.2)
Less
Market Value of Retained Land (incl. impact of work)	$784,000
(copied from 16.4)
Assessed Injurious Affection	$ 96,000

We note injurious affection can be analysed on before and after basis as above and also a check methodology should be used based on a percentage deduction (i.e. the $96,000 is 20% of the after-land value ignoring the work)

This can be expressed in the Valuation as:

Injurious Affection based upon Land Value of $480,000 @ 20%	$96,000

Or based upon Total After Valuation of $880,000 @10.9%	$96,000

Would generally find using a percentage adjustment on the land value only acceptable however there are cases where the improvements may be unduly affected if within the close proximity of the works, then may be more appropriate to base it on total value.

The rationale for this check methodology is that it may give more clarification to the impact of the work rather than just using one global approach.

Assessment of Betterment

Delete this page if there is no Betterment.
With reference to our analysis of sales of properties that are comparable to the subject property on completion of the work, we have assessed the Betterment of the work on the retained land (and other land of the claimants that is affected by the acquiring of the described land), as follows:

Assessed Betterment of Retained Land	$24,000
Plus
Assessed Betterment of Claimants Other Land	$0
Total Betterment	$24,000

Again, the same approach to injurious affection can be utilized with a before and after approach backed up by the percentage adjustment check methodology.

Compensation Assessment

Delete this section if valuation is for a total purchase.
The total compensation is the value of the land (and any improvements on it) to be acquired plus the injurious affection to the remaining property attributed to the proposed works less the betterment to the property on completion of the proposed works.
We assess the compensation for the acquisition of the required land to be $192,000 (One Hundred and Ninety Two Thousand Dollars). This is further broken down as follows:

Market Value of Land and Improvements to be Acquired	$120,000
Injurious Affection (to retained land)	$96,000
Total Compensation (prior to any betterment)	$216,000
Note to Valuer - Delete following if there is no betterment.
Less
Betterment	$24,000
Total Compensation	$192,000

Concluding Remarks

This report is to be read in conjunction with the attached appendix documentation, including: the Scope of Works the Terms of Engagement the client engagement contract Please do not hesitate to contact me should you require any further assistance or clarification.

Valuer Company Contact Details

Appended RT/CFR Land Requirement Plan Longitudinal Plans Planning Conditions Photo Montage/Profile Plans/Concept Drawings Mitigation Reports Impact Reports (e.g. Traffic, noise, pollution) Designation Planning Condition