43 C.F.R. § 2201.3-2 – Market value.

(a) In estimating market value, the appraiser shall:
1. (1) Determine the highest and best use of the property to be appraised;
2. (2) Estimate the value of the lands and interests as if in private ownership and available for sale in the open market;
3. (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. (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. (5) Estimate separately, if stipulated in the agreement to initiate in accordance with § 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 § 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. (1) The various interests contribute their full value (pro rata) to the value of the whole; and
2. (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.