Appraisal

The Real Estate Department administers an appraisal office as part of its implementation of the Navajo Nation Business Site Leasing Regulations of 2005 (Tribal Regulation of 2005) and the Navajo Nation Business Site Lease Management Plan (The Plan).

The appraisal office was established to primarily assist the clients of the Division of Economic Development. The appraisal office works with business site leases, more specifically, only surface leases. Furthermore, the business sites must be on trust land (leasehold estate). However, the appraisal office will gladly help the Navajo Nation with the appraisal process if a written request is received, but it is the other entities responsibility to hire their own fee appraiser.

Market Rental Analysis

The Navajo Nation Business Site Lease Management Plan consist of two separate policies. One is the Navajo Administrative Plan (Admin Plan), and the other is the Navajo Management Plan (Management Plan). The Navajo Nation has chosen to use a quick equivalent procedure instead of a complete appraisal.

The Market Data Research (MDR) is basically a market rental analysis of local leases around the subject property. Many variations go into the analysis, such as acreage, property condition, and highway frontage. The analysis establishes a low and high fair annual lease value. The sponsor and the client then structure a lease according to a variety of options, but ultimately the appraisal office determines if such actions are in the best interest of both parties.

Ultimately, if you decided to work with your Regional Business Development Office or hire your own fee appraiser, your report should contain an income approach, cost approach, and sales approach. Please note, the Navajo Nation does not maintain a list of private sales on the reservation and businesses with proposed gross receipts of more than $1 million per year and more than four tenants must have their site valued by a certified general appraiser.

For more information about local studies or appraisals, contact the Real Estate Department.