Preliminary Value Estimate Rural Property Report Template – Compensation Valuation under the Public Works Act 1981

Why a Template?

These Templates have been developed to:

Assist valuers with preparation of preliminary value estimates for property to be acquired under the Public Works Act, 1981

Assist valuers with a base report format with recommended limitations and conditions given the nature of the preliminary value estimate (kerbside inspections only, desktop reports) which does not comply with valuation standards.

Enable easier comparisons between value estimate reports.

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

How to use this template

The report templates provide the base report format to be used for early stages of PWA acquisition work.

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

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

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

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

Key to Text

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

The non-shaded text should be retained where possible particularly in reference to the preliminary value estimate, limitations and conditions etc.

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

PRELIMINARY VALUE ESTIMATE For COMPENSATION PURPOSES

Insert Photo
PROPERTY ADDRESS CLIENT DATE OF VALUE ESTIMATE NOR #

(INTRODUCTION LETTER EXAMPLE)

Date

Address
Suburb
City

Dear INSERT NAME

Preliminary Value Estimate for Compensation Purposes

Insert Project Name – Interest to be Acquired

Insert Subject Property Address

In accordance with instructions from INSERT NAME of INSERT CLIENT NAME, we have provided a Preliminary Value Estimate for INSERT PURPOSE. The preliminary value estimate is undertaken based on a kerbside inspection only and is subject to the commentary, conditions, limitations and valuation principles and policies detailed in this report.

This preliminary value estimate report has been prepared solely for the purpose stated and is only to be relied upon by INSERT CLIENT NAME.

We refer to our findings in the following report.

Regards

INSERT VALUER & COMPANY SIGN OFF

Executive Summary

Project:
Notice of Requirement (NOR): or similar
Property Address:
Brief Overview:
Instructions:	We are instructed to provide a preliminary report based on a kerbside inspection only and is not compliant with valuation standards.
Purpose of Value Estimate:	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 temporary occupation rental assessment, (NOTE unlikely to be asked to do this based on kerbside only), and disturbance etc.
Client:
Affected Parties/Landowner:
Kerbside Inspection Date:
Value Estimate Date:
Record of Title:	Identifier -
Tenure:	Fee Simple | Stratum Estate in Fee Simple | Leasehold | Stratum Estate in Leasehold etc.
Basis of Value Estimate:	Current Market Value
Land Area (To be Acquired):	0000m2
Value Estimate Approach:	Market Approach using Direct Comparison, including using the ‘Before and After’ approaches and principles.
Preliminary Compensation Estimate:	Hundred Thousand Dollars ($000,000) plus or incl GST (if any) Value Estimate Summary We assess the Preliminary Compensation (Incl Chattels), for the total property /partial acquisition of the required land to be: Preliminary Compensation $000,000 Apportionment of Compensation Delete if valuation is for total purchase Land and Improvements, plus GST (if any) $000,000 Injurious Affection $000,000 Compensation $000,000 Less Betterment $000,000 Total Preliminary Compensation $000,000
Prepared By:	Valuer – Credentials and Company Name

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

All figures are stated in NZ($) Dollars

Value Estimate Assumptions & Conditions

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

Key Examples (BUT NOT LIMITED TO)

This preliminary value estimate is undertaken on the basis of a kerbside inspection only and therefore cannot be relied upon as a formal valuation as it lacks a full inspection and consideration of all relevant information. A full market valuation is intended to be completed at a later date, and these results may differ, following a full inspection, detailed investigation and availability and consideration of full property information. A preliminary value estimate is subject to limitations and restrictions which may result in wider variations than would be expected from a full valuation and is intended to provide an indicative value prior to undertaking a full valuation which includes a full inspection of the property.

The value estimate is restricted to a kerbside inspection only, therefore we have limited information of the physical aspects of the subject property. Where available, we have relied upon publicly available information in forming our understanding of the property such as property databases, marketing information, property file (if available) or other sources.

This value estimate does not comply with valuation report standards and is intended as an initial guide to value which will be followed by a full valuation report.

Our value estimate has been assessed in accordance with compensation principles (Public Works Act 1981) detailed within this report. No responsibility is accepted if this report is used for any other purpose.

It is assumed the acquiring authority shall meet any costs associated with the transfer of ownership of the land to be acquired, together with the reasonable costs incurred by the landowner in addressing acquisition issues and determining compensation.

The value estimate is based on the Land Requirement Plans (or similar) provided by the instructing party.

The value estimate is effective as at the date of kerbside inspection, unless otherwise stated. Should there be any significant delay in determining compensation it may require a reassessment.

Our value estimate is undertaken based on market value. This is defined in IVS 2020 however, note it varies slightly from the definition under the Public Works Act 1981. As our value estimate must be undertaken in accordance with the Public Works Act 1981, we confirm this minor departure from IVS 2020. Despite this minor departure, the market value definition under IVS 2020 is considered a suitable proxy.

We limit the time that our preliminary value estimate may be relied upon to three months or less, from the effective date of value estimate and we exclude all liability where the preliminary value estimate is relied upon after that time period.

Further examples or points to consider or to think about -

Our preliminary value estimate addresses the estimated value of the property subject to the existing tenancy arrangements or assuming vacant possession or the leases are not material?

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.

Is there Injurious affection?

Is there any betterment?

Assumptions regarding contamination?

Disclaimers, Limitations and Compliance Statement

(Insert from Company’s Template)

We are instructed to provide a preliminary report based on a kerbside inspection only, which does not comply with valuation standards.

Restrictions on Use, Distribution or Publication.

Market Movement.

Valuers Interest.

Market Value Definitions.

Identification and status of the Valuer.

Identification and status of the Peer review Valuer.

TABLE OF CONTENTS

Executive Summary	4

Value Estimate Assumptions & Conditions	5

Disclaimers, Limitations and Compliance Statement	6

1.0	Introduction/Scope of Works	8

2.0	Legal Description	10

3.0	Rating Valuation	11

4.0	Resource Management	12

5.0	Location Description	13

6.0	Land	14

7.0	Improvements Description	15

8.0	Proposed Acquisition Description	17

9.0	Compensation	18

10.0	Value Estimate Approach and Reasoning	20

11.0	General Market Commentary	22

12.0	Sales evidence	23

13.0	Value Estimate Process	27

14.0	Value Estimate Conclusion (Total Acquisition)	28

15.0	Value Estimate Conclusion (Partial Acquisition)	29

16.0	Assessment of Injurious Affection (Impact of the work on the Retained Land)	31

17.0	Assessment of Betterment	32

18.0	Compensation Assessment	33

19.0	Concluding Remarks	34

Appendicies	35

Introduction/Scope of Works

(Insert from Company’s template)

Introduction

Brief Description about project, the land take of the subject property

Identification and Status of the Valuer

The Registered Valuer is ………………….

The Valuer is in a position to provide an objective and unbiased preliminary value estimate.

The Valuer has no material connection or involvement in the preliminary value estimate or party commissioning the preliminary value estimate.

The Valuer is competent to undertake the preliminary value estimate.

The Valuer holds a current Annual Practising Certificate.

Client

The preliminary value estimate 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 preliminary value estimate for ………………. No responsibility accepted to other persons other than the party to whom the preliminary value estimate report is addressed.

Purpose of the Valuation

To assess the preliminary value estimate for …………………….

Identification of the Asset

Property Address

Basis of Value Estimate

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.’

The definition of ‘Market Value’ under Public Works Act is stated as “The value of land shall, except as otherwise provided, be taken to be 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”. This definition differs slightly from the above however, the IVS (effective 31 January 2020) is considered a suitable proxy.

A preliminary value estimate lacks a full inspection and consideration of all relevant information normally undertaken in a fully compliant Market Valuation. If instructed to undertake a full Market Valuation the results may differ.

Value Estimate Dates

Date of Kerbside Inspection:

Date of Value Estimate:

Extent of Investigation

We have undertaken a kerbside inspection of the subject property only and our preliminary value estimate may be subject to change resulting from a full inspection, detailed investigation, and consideration of detailed property information.

Nature and Source of the information Relied Upon

State information type and source.

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

Valuation Standards and Guidance Notes

This value estimate does not comply with valuation report standards.

Assumptions and Special Assumptions

Given the nature of this assignment, the valuers may want to reference to other sections where they have already stated assumptions and conditions (in this sample report the Preliminary Value Estimate Assumptions and Conditions) etc or insert assumptions in this section based on the company’s template.

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

(Insert from Company’s template) – Use multiple tables or sections if required

Identifier:
Tenure:
Legal Description/Appellation:
Registered Proprietor:
Land Area:
Interests Registered on Title:
The above (non-financial) registrations are noted and are not considered to materially affect the value of the property. Comment on the Tenure and area to be acquired.

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

(Insert from Company’s template) – Use multiple tables or sections if required

Date of Assessment
Roll Number
Land Value	$
Value of Improvements	$
Capital Value	$
Territorial Authority Rates (2020-2021)	$ Plus or Incl GST

Resource Management

(Insert from Company’s template)

District Plan

Territorial Authority
Zoning
Overlays, Controls and Designations
Permitted Use
Development Controls
Heritage (if applicable)
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

Unlikely to be known but If the valuer is aware the property is subject to a Resource Consent, please provide a description of the details of what the resource consent pertains to and the effect on the value estimate of the subject property of the Resource Consent.

Location Description

(Insert from Company’s template)

Points to consider:

Location & Situation

Amenities

Surrounding development

Saleability of the area

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

Land

(Insert from Company’s template)

Land description

The valuers should state the property was inspected from the kerbside only and certain aspects are unable to be viewed. As such reliance has been placed from available Council GEOMAPS or similar mapping systems etc.

Land use
Land area and shape Layout
Access Contour/Classes of land Cover Aspect
Soils and Erosion
Weeds and Pests Fencing and subdivision
Pasture Management
Water Resources
Stock and Production History

Insert map of subject property (showing dimensions and topography where possible)

Environmental & Regulatory 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

The valuers should state the property was inspected from the kerbside only and certain aspects are unable to be viewed. As such reliance has been placed from available Council GEOMAPS or similar mapping systems.

(Insert from Company’s template)

Main Improvements overview

Broad overview of the improvement i.e.

Valuer estimated/ assumed age based on kerbside view and council records

Type of Dwelling(s)

Other Farm Buildings

Other Improvements/Buildings

Valuers may opt to incorporate the below sections (excluding the floor area) into the overview, if so do make clear what assumptions are made, or what was observed or obtained from public mapping data or provided by third parties.

Photographs

Estimated Floor Area

Valuer to state the adopted estimated floor area and how or where the area was obtained from i.e. Provided by Council records or other Third Parties, Provided Plans, Property File, Public Council Geomaps, Property Guru/RPNZ or other means etc.

The adopted floor area is an estimate only and is subject to change based on a full property inspection and measure.

General Construction

As the inspection is undertaken from the kerbside, the valuer should state below (if this section is used) the construction elements based either on what could be viewed, assumptions, and should state that the valuer is unable to view all improvements on site.

Foundations
Floor
External cladding
Joinery
Roof
Internal linings

Other Farm Buildings

Valuer to state if known either based on what could be seen from the kerbside, assumptions or from third party sources or mapping systems.

Implement Shed
Workshop

Other Improvements/Buildings

Valuer to state if known, the other improvements or buildings on site either based on what could be seen from the kerbside, assumptions or from third party sources or mapping systems.

Decks/Terraces
Site Development
Water Supply
Fencing
Tracks
Other Buildings

Condition and Repair

Unlikely to have information on this but if available, make a general comment about the condition (fair, average, good or new or assumed).

Proposed Acquisition Description

General Project Overview

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.

Proposed Acquisition

Description

Describe the land or interest to be acquired i.e. partial land acquisition – dimensions etc, full acquisition, sub-strata etc.

Land Requirement Plan

We refer to the provided Land Requirement Plan:

(inserted here).

Delete this section if the acquisition is for the entire property.

Impact of Acquistion 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 dwelling 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

REMOVE IF NOT APPLICABLE: 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.

Value Estimate Approach and Reasoning

From this section onwards, the valuers should only use headings and sections that are relevant. Below is a comprehensive list of examples that may be used.

(Insert from Company’s template)

Value Estimate Approach

Discuss the reasons for adopting the 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 10.2 – 10.3 if the value estimate 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’ Approach

The value estimate 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 Commentary

Please comment on general market trends in the wider rural economy, 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

(Insert from Company’s templates)

Comparable Sales of Improved Properties

We summarise the following Sales of Improved Properties:

‘Before’ Value Estimate Improved Properties Evidence (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.

Sample Sales Table (insert company templated table)

182 Djokovic Road
Sale Date	Sep 2011	Comprises a hill country block. It is improved by way of a small 10 year old dwelling, garage, fencing and a farm track. This sale is plus GST.	Photo
Sale Price	$500,000
Land Area (ha)	20.8
Sale Price / ha	$24,000
Analysed Val of Imps	$175,000
Residual LV/ha	$15,625
Comparability	This is a smaller property with lesser quality improvements and in an inferior location to the subject property. We consider it to be inferior to the subject property in both the ‘before’ and after’ situations.

‘After’ Value Estimate Improved Properties Evidence (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.

Sample Sales Table (insert company templated table)

185 Street, Suburb
Sale Date	Sep 2011	Comprises a hill country block. It is improved by way of a small 10 year old dwelling, garage, fencing and a farm track. This sale is plus GST.	Photo
Sale Price	$500,000
Land Area (ha)	20.8
Sale Price / ha	$24,000
Analysed Val of Imps	$175,000
Residual LV/ha	$15,625
Comparability	This is a smaller property with lesser quality improvements and in an inferior location to the subject property. We consider it to be inferior to the subject property in both the ‘before’ and after’ situations.

Improved Sales Reconciliation and summary

Insert Company Template

Sale No.	Address	Sale date	Sale price	Area Rate (/ha)	Comparability ‘Before’ ‘After’
‘Before’
1.
2.
3.
‘After’
1.
2. 3.

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 Vacant Rural Zoned Land

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.

Sample Sales Table (insert company templated table)

79 Wawrinka Road, Waikanae
Sale Date	Aug 2011	Bare block of moderately steep hill country situated 8km east of Waikanae, being accessed via a narrow and winding road. This property has access off the end of this no exit road via a shared driveway. The land is fenced on the boundaries and internally and is provided with a reticulated water supply from a bore. The sale is plus GST.	Photo or aerial map of sale
Sale Price	$375,000
Land Area (ha)	39.6
Sale Price / Ha	$9,470
Analysed Land Val	$358,000
Analysed LV/ha	$9,040
Comparability	A smaller block in an inferior location to the subject property. Overall inferior to both the ‘before’ and ‘after’ scenarios.

Vacant Rural Zoned Land Sales Reconciliation and Summary

Sale No.	Address	Sale date	Sale price	Land Area Rate (/ha)	Comparability ‘Before’ ‘After’
‘Before’
1.
2.
3.
‘After’
1.
2. 3.

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 value 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.

(INSERT COMPANY’S EVIDENCE TABLES)

350 Hewitt Road, Wellington
Sale Date	Nov 2012	Comprising of rolling hill country, this property is located towards the end of Hewitt Road, which is a winding, steep narrow road. Surrounding properties are either lifestyle or small uneconomic units. The Petone to Johnsonville expressway runs along the rear boundary of this property. This sale is plus GST.	Photo
Sale Price	$637,500
Land Area (ha)	57.9
Sale Price / ha	$11,000
Analysed Val of Imps	$210,000
Residual LV/ha	$7,380
Comparability	Of similar size to the subject property, after the proposed partial acquisition, plus of similar contour and location to the subject property. We consider this sale offers a good comparison to the subject property on completion of the work.

Sales Reconciliation and Summary

Sale No.	Address	Sale Date	Sale Price	Land Area (ha)	Comparability
Sales of Improved Properties
1.	350 Hewitt Rd	Nov 2012	$637,500	57.9	I	Inferior
2.
3.
Sales of Vacant Land
1.
2.
3.

Value Estimate 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).

Value Estimate Conclusion (Total Acquisition)

Market Value Estimate (Total Purchase Ignoring the Work)

Clearly state your treatment of GST in your valuation and assessment of market value.

Example – 150 ha (Improved)

Land Value
Curtilage (Say 4,000 m²)	$
Land Value - 150 ha @ $xx/ha	$
Total Land Value	Say	$
Buildings
Dwelling – xxx m² @ $xx/ m²	$
Carport/Garage – xxx m²	$
Implement Shed - xxx m²	$
Value of Buildings	$
Other Improvements
Site Development	$
Water Supply	$
Tracks	$
Fencing	$
Value of Other Improvements	$
Chattels	$
Total Value of Improvements	Say	$
Market Value (plus GST if any)	$

Value Estimate 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’ Value Estimate (refer to 14.1)

Value Estimate (plus GST. if any)	$

‘After’ Value Estimate (Retained Land Ignoring the Work)

Example – Retained Property 130 ha (Improved)

Land Value
Curtilage (Say 4,000 m²)	$
Land Value - 130 ha @ $xx/ha	$
Total Land Value	Say	$
Buildings
Dwelling – xxx m² @ $xx/ m²	$
Carport/ Garage – xxx m²	$
Implement Shed - xxx m²	$
Value of Buildings	$
Other Improvements
Site Development	$
Water Supply	$
Tracks	$
Fencing	$
Value of Other Improvements	$
Chattels	$
Total Value of Improvements	Say	$
‘After’ Value Estimate (plus GST if any)	$

Value Estimate of Land to be Acquired

Value Estimate of Land to be Acquired (plus GST if any)	(Difference 15.1 and 15.2)	$

‘After’ Value Estimate of Retained Land (Including Impact of the Work)

Example – Retained Property 5.25 ha (Improved)

Land Value
Curtilage (Say 4,000 m²)	$
Land Value - 130 ha @ $xx/ha	$
Total Land Value	Say	$
Buildings
Dwelling – xxx m² @ $xx/ m²	$
Carport/Garage – xxx m²	$
Implement Shed - xxx m²	$
Value of Buildings	$
Other Improvements
Site Development	$
Water Supply	$
Tracks	$
Fencing	$
Value of Other Improvements	$
Chattels	$
Total Value of Improvements	Say	$
Value Estimate of Retained Land (incl. impact of work)	$

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

Delete this section if value estimate 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:

Value Estimate of Retained Land (ignoring the work)	$
(copied from 15.2)
Less
Value Estimate of Retained Land (incl. impact of work)	$
(copied from para 15.4)
Assessed Injurious Affection	$

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.

This can be expressed in the Value Estimate as:

Injurious Affection based upon Land Value of	$...,000 @ …%	$...,000

Or based upon Total After Value Estimate of $...,000 @ ...%	$...,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

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	$
Plus
Assessed Betterment of Claimants Other Land	$
Total Betterment	$

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

Compensation Assessment

Delete this section if value estimate 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 preliminary compensation for the acquisition of the required land to be:

$,000

(Thousand Dollars).Plus or Including GST (if any)

This is further broken down as follows:

Value Estimate of Land and Improvements to be Acquired	$
Injurious Affection (to retained land)	$
(Total) Preliminary Compensation	$
Note to Valuer - Delete following if there is no betterment.
Less
Betterment	$
Total Preliminary Compensation	$

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.

Kind Regards

SIGNITURE

Valuer Name, Credentials

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

Appendicies

Attach Appendices from this point onwards