What Contributes to Fair Market Value in an Eminent Domain Case
Eminent domain and fair market value go hand-in-hand. When the government acquires what they consider eminent domain from you, they need to pay you what is determined to be the fair market value. This is a term that is often misunderstood and taken out of context. Fair market value is the amount of compensation that is going to be paid to you in the event that your property is taken in a case such as this. Eminent domain law is going to vary state to state, but the general definition and factors that contribute to fair market value are fairly consistent across the board.
Determining Fair Market Value
In just about every case, the fair market value of a property is going to be the price that a buyer and seller would agree to in the event that the property was sold on that given day. The best example of this would be a seller that was going to put his house on the market one day next week. The day that the house goes on the market, the highest price that a buyer is willing to pay and have the seller agree to is going to be considered the fair market value. Both parties have to agree to the price for it to be considered to be fair for both sides.
Evidence of Fair Market Value
In order to prove the amount that is the fair market value, information is going to be necessary. The best information and proof of fair market value comes from a real estate appraiser or group of appraisers brought in to give an opinion. They do not always agree, but that is why a few different appraiser opinions may be taken into account. The end game is an eventual agreement that is made as to what the value of the property truly is.
Finding the Right Representation and Appraisers
The real estate appraisers that are brought in to determine fair market value are usually hired by an eminent domain attorney. The attorney that you hire should have experience in dealing with eminent domain cases in your jurisdiction. They are going to know the right appraisers to hire in order to be able to properly apply a value to your property. Properties differ in terms of location and style. Certain appraisers have more experience with certain areas and home styles than others and can benefit the value more than others.
Eminent domain cases can be subject to a lot of pinion on the part of what your property value truly is. Fair market value is going to drive the conversation, but getting to that true fair market value number will depend on your attorney and the appraiser(s) that is brought onboard. At the end of the day, you should be comfortable with the determination of fair market value before going forward and agreeing to resolve your eminent domain case. You know what your property is worth and an eminent domain attorney can help get you the result you want.