Eminent Domain & the Role of Real Estate Valuations
As a homeowner, the idea of losing your property to eminent domain can be unsettling. Many property owners are left wondering if the compensation they receive is truly fair—or if they have any options to fight the process.
In this blog, we’ll explore the ins and outs of eminent domain and why an independent real estate valuation is crucial for protecting your interests. Whether you’re negotiating for fair compensation or considering legal action, understanding your rights and the value of your property can make all the difference.
What Is Eminent Domain?
Eminent domain is a legal power that allows the government to take your private property for public use. Typically, the government uses eminent domain when it needs land for projects that are deemed “essential” for the general public, such as building roads, highways, parks, schools, pipelines, or railways.
Do You Get Paid for Eminent Domain?
Yes. The law requires the government to pay “just compensation” if your property is seized. “Just compensation” means you should be paid the fair market value of your property.
Fair market value is the price your property would sell for under normal circumstances. It’s based on factors like the size of your property, its location, condition, and the current real estate market in your area. The idea is that you’ll receive enough money to buy a comparable property elsewhere, softening the blow of losing your property.
In some cases, “just compensation” goes beyond the market value of your property. You may get additional funds to cover relocation, custom-built structures and special features, or lost business revenue. If the project impacts value or damages your remaining property — such as a road that goes through only part of your property — you may also receive extra compensation for the reduced value of the remaining property.
Can You Fight Eminent Domain?
Yes. If you feel the government’s claim is unnecessary or unfair, there are ways to challenge it in court, either to stop the process completely or get additional compensation.
The main ways to fight back against eminent domain are to challenge the necessity of the project or prove it’s not truly for public benefit.
For example, if they’re building a new road but could realistically choose an alternative route, you might be able to argue that your property doesn’t need to be taken. Or if the project primarily benefits private developers or corporations, such as a shopping mall or luxury development, it might not qualify as “public use,” despite the government’s claims.
Procedural errors can also help when it comes to eminent domain disputes. If the government fails to notify you properly, doesn’t provide the required documentation, or violates any other legal procedures, you have grounds to challenge their claims.
Fighting eminent domain can be time-consuming and expensive. However, it’s worth exploring your options if you feel you’re being unfairly targeted or undervalued. An attorney and accurate real estate valuation can help you decide how to proceed.
Why an Accurate Real Estate Valuation Is Key
An independent valuation report provides an unbiased, detailed report of your property’s worth that you can then use to negotiate for additional compensation or, if necessary, in court. It can help you protect your financial interests and provide peace of mind.
The initial compensation offer may accurately reflect the value of your property. Representatives may try to minimize costs or undervalue any unique features, resulting in less than you deserve. An assessment from an independent real estate valuation expert, like Akrivis, can ensure you receive fair compensation.
Akrivis is Here to Help
Don’t let the government have the final say on what your property is worth. If you’re going through the eminent domain process, the team at Akrivis is here to help. Our real estate valuation experts can get you an accurate report in five business days or less to ensure you’re not leaving money on the table.