Fair Compensation

What is the fair value for your property?

Just and Fair Compensation for Your Property

Condemnation actions by the federal government employ a different formula in partial taking cases than that used in Condemnation actions under authority of the Texas Constitution and Property Code. Feel free to contact us directly by telephone if you are faced with a federal condemnation issue.

The Texas formulas are set out below:

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.

Below is the definition of Fair Market Value that has been accepted in most cases, and which is used in the Appraisal form that the TxDOT requires its appraisers to fill out, and which is set out in the Right of Way Manual that the TxDOT requires the appraisers it hires to conform with. 

Key Component of a Condemnation Appraisal Include:

• The Date of Valuation – or date of taking: Recognizing that real estate value may go up or down over time, this is an arbitrary date that all valuation witnesses must use, regardless of when they actually complete an appraisal.
• Highest and Best Use in light of the reasonably foreseeable use to which the property could be expected to be put, in light of the applicable restrictions and amenities.
• The characteristics of the property affecting its marketability, including its unique features, location, supply of competing property with such characteristics, demand, and development trends.

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.