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How do you determine the value of real estate?

On Behalf of | Mar 19, 2024 | Real Estate Law |

When it comes to eminent domain, one key thing to remember is that the government has to provide just compensation when taking someone’s private property. Eminent domains can often be used for public works, like the construction of an interstate or certain government facilities. 

But the government does not get the property for free, and they have to pay the amount that the landowner would get if they sold that property on the open market. So how do you determine what the property is actually worth? Below are two things to consider.

A third-party appraiser

If the government offers you an amount of money for your property that you don’t believe is fair, you may want to consider hiring an appraiser. They can do a valuation and tell you what they believe your property would sell for today. This documentation can help you if you want to counter the government’s offer because it shows that you have a genuine reason to believe you are not receiving just compensation. You may be able to negotiate for a higher price. 

Local comps

An easy way to begin this process is by getting comps, which means looking at comparable properties. This is what real estate agents and appraisers do when deciding how to list a property. If there are similar properties in the area that have recently sold, this can give you an accurate idea of what the market value of your property looks like at the moment.

That said, there’s a very real possibility that the government is going to offer you much less than you believe you should receive. If this happens, you must know what legal steps to take next.