Properties are usually condemned under a legal principle known as eminent domain. The United States Constitution guarantees that landowners must receive fair compensation if their property is taken under eminent domain. This applies to land taken by the government and by private and public utilities. Determining what constitutes fair compensation, however, can be a tricky proposition. Working with a Katy real estate law firm can help you navigate the complexities of eminent domain and condemnation to achieve a fair financial settlement for your property.
Determining Fair Market Value
Several factors go into the process of assessing the value of a parcel of property for the purposes of condemnation proceedings.
- The highest and best use of the property must be considered when determining the value of the property, even if the land is not currently being used for that purpose.
- A recent appraisal must usually be performed to ensure the most accurate assessment of the property’s value. Older appraisals may be adjusted or considered less important in determining the compensation provided when a piece of property is condemned.
- All other elements that can affect the value of the property should also be considered. These include its location, current market prices and trends, any special features of the property and demand for real estate in the area.
Your Sugar Land real estate law firm can provide you with the best support and representation to ensure the highest valuation for your condemned property.
Methods of Assessing Property Values
In most cases, comparable market data will be used to determine the value of the property to be condemned under eminent domain. If insufficient market data is available in the area or if the real estate has unique features that distinguish it from other properties, however, a cost approach may be used to determine the financial investment required to replace the land and any improvements to the property at the time of condemnation. Properties that produce income may be valuated using an income capitalization method that estimates the current and future income potential of these real estate holdings.
If you need the professional services of a Sugar Land small business attorney to deal with condemnation and eminent domain proceedings, the law office of Henry A. Jakob can help with expert guidance and representation to ensure that you receive the highest possible compensation for the loss of your property. We specialize in all aspects of civil litigation, real estate law and contracts to ensure the best outcomes for your cases. Call us today at 832-879-2244 to schedule a consultation. Our legal team will be happy to represent your interests both in and out of court.