There are many legal and procedural issues involved in an accurate condemnation appraisal. A federal condemnation will require a different analysis and report format than a state or local taking. It is important to hire an appraisal firm that has experience and training in these types of valuations.
An eminent domain action may reserve certain rights in the property to the current owner. The government may petition to take only part of, or a partial interest in, the property. This requires the appraiser to value the "larger parcel" -- the currently undivided, contiguous property -- and the "remainder" of the property, or rights to use the property, that will be held by the owner after condemnation and factor that into the overall value of the taken property. It will often be necessary for the appraiser to determine his or her opinion of value on the "remainder" before the taking and after the development or use prompting the taking, because they are likely to be very different.
Likewise, appraisers always consider a property's "highest and best use" when formulating an opinion of value. For many condemnation appraisals, it is necessary to consider the highest and best use of the property before taking and after the development or use resulting from the taking. Again, it is important to have a professional appraiser with experience and training.
Because an appraiser may often have to testify about his or her condemnation appraisal, it is important that certain steps in valuation methodology -- such as selecting and analyzing comparable sales -- be performed more thoroughly. You rely on your appraiser to know what's necessary, so again, it's important to select an appraiser/company that has experience and training. Browse our website to learn more about our qualifications, expertise and services offered.