Appraisers brief county on conservation‑easement valuation and peer review for PDR program

On Feb. 3 the Routt County Purchase of Development Rights (PDR) advisory board and conservation partners briefed county commissioners on appraisal practices for conservation easements and how appraisal type affects value estimates.

Kevin Chandler, an appraiser who has performed more than 70 conservation‑easement appraisals, told the board: “The minimum standard that we have out there is USPAP, the uniform standards of professional appraisal practice, and that's really the minimum.” He explained funders and tax purposes require different appraisal products — restricted appraisal letters for early budgeting, USPAP appraisal reports for funding decisions, and a separate “qualified appraisal” for IRS tax‑credit and charitable donation documentation — and that each serves a different legal and timing purpose.

Chandler and land trust representatives described how the appraised value of a conservation easement depends on whether the easement encumbers the landowner’s entire holding or only a portion. Funders commonly value only the land area being conserved; IRS tax appraisals may require appraisal of contiguous family‑owned property and can show materially different results in the “before” and “after” comparison. Kevin advised that Routt County require state certification and demonstrated competency for appraisers and consider peer review when an appraisal raises questions.

Cattlemen’s Land Trust staff and PDR board members summarized local experience: Routt County easements with modest reserved development typically show value reductions in the 30–38% range, whereas easements that sterilize development options (no year‑round homes) can produce higher percentage losses. The board discussed benefits of clarity — consistent minimum standards for appraiser qualifications (state certification, local competency) and an available peer‑review mechanism — while preserving flexibility to meet funder requirements (e.g., NRCS or GOCO standards) when co‑funding is involved.

Commissioners and the PDR board noted the county’s program resolution requires appraisals be prepared by Colorado state‑certified appraisers. Presenters advised the county to maintain that baseline while making peer review available when needed, and to encourage early restricted appraisals so landowners and funders can align expectations before committing funding. The PDR board said staff would follow up with a written summary and suggested next steps for implementation.