Real Estate Property Values During Condemnation
There are a variety of factors to consider when appraising a property that is subject of a Texas condemnation action. Not all of these factors can be addressed on this site, and some may be unique to a particular property.
Key Component of a Condemnation Appraisal Include:
In partial taking cases, a second value determination is made, and compensation for remainder damage may be awarded. The remainder property should be separately evaluated in light of each of the appropriate marketability factors, subject to the impact of the taking and/or construction project upon its economic utility, and exclusion of certain factors that have been ruled non-compensable as a matter of law. Diminution in value may be due to factors that have been determined to be non-compensable, in which case the owner will not receive compensation for the loss. (Factors such as loss of visibility from traffic, conversion from a two-way road to a one-way road, and “circuity of travel” have been determined to be real, but non-compensable.) If the diminution is due to factors that are historically compensable, the owner may be compensated for that “damage”.
Real estate appraisers that are experienced in condemnation litigation may recognize the relevant factors, if they are provided sufficient information. We recommend that Condemnees consult an experienced Eminent Domain attorney with whom they feel comfortable, upon learning that their property is in harm's way.
One of the first steps in a condemnation proceeding is when the Condemnor’s appraiser requests permission to inspect the property.
An appraisal is a supported opinion of value. Property valuation in the condemnation process must be performed in light of a body of condemnation law developed in the Appellate Courts over a period of several decades. A condemnation appraisal often must be substantially different from a typical appraisal for marketing or financing.
The government's power of Eminent Domain has also been granted (by the Texas Legislature) to certain corporations and “authorities” who now have the power to compel Texas Courts to award them your property.
Eminent Domain describes the power to condemn land for a public purpose while providing the owner with adequate compensation.
An experienced condemnation attorney may be able to anticipate problematic evidentiary issues raised by a particular case.
Two areas that are often misunderstood are: