Government entities and companies hired for government projects have the right to compel the sale of real property under certain circumstances. They can force individuals and businesses to sell real estate necessary for public projects through condemnation.
Eminent domain property transfers often begin with a request to purchase the property voluntarily. If homeowners refuse the offer, then the condemnation process begins. Property owners generally have a right to receive fair compensation for the sale of their property under eminent domain laws.
In any of the three scenarios below, the amount initially offered might be unreasonably low.
1. Significant interior renovations
When property owners remodel the bathroom, finish a basement or make other significant property improvements, those changes can substantially increase the fair market value of the property. The party pursuing condemnation is likely unaware of the improvements to the interior of the space, making documentation necessary to secure a fair offer.
2. Fluctuating local markets
Factors ranging from reports on school performance to high-profile crimes can have a profound, short-term negative impact on property values. In some cases, the condemnation process occurs during a temporary downturn in market values. Property owners may need help showing that current sale prices for comparable properties are not a reasonable representation of what properties are worth.
3. Hidden resources
Real property owners may have mineral and water rights related to the land they own. In some cases, those resources can be valuable and may even be a source of revenue.
Property owners seeking to challenge the amount offered for an eminent domain property sale may need support to understand and utilize their rights. Working with an attorney can make it easier to estimate an appropriate value for real property and counter the sale price offered during formal condemnation proceedings.