Valuation

Real Estate Property Values during Condemnation

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.

An experienced condemnation attorney may be able to anticipate problematic evidentiary issues raised by a particular case.

Two areas that are often misunderstood are:

• Project influence: This is a theoretical increase in property values in the surrounding area because of the new project. Although it is not clear when the term was invented, its scientific validity and application in specific condemnation cases is debatable. The trial Court may decide to exclude or to allow evidence on this controversial concept on a case by case basis.
• Condemnation blight: This one of the terms used to describe the negative impact that a project has upon property uses and marketability, due to threat of eviction of tenants, the impact of vacancy and vandalism of partly demolished properties along a project, or other factors, such as whether the maintenance is neglected due to pending demolition, or whether the Condemnor allows detrimental uses of surrounding property.

Avant & Mitchell, LP
1301 Nueces St. Suite 200
Austin, TX 78701

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