Before and After Valuation

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Valuation

Before and after: the method behind almost every partial taking

Value the whole property before. Value what is left after. Subtract. The method is simple to state and it is where nearly every substantive disagreement in condemnation valuation actually lives.

Worked illustration

The same taking, valued two ways

StepAppraisal AAppraisal B
Whole property before900,000900,000
Remainder after, with project built690,000760,000
Compensation (difference)210,000140,000
Of which, value of land taken140,000140,000
Of which, severance damages70,0000
Where they differRemainder loses value from reduced frontage and altered accessRemainder treated as unaffected apart from the lost area

Both appraisals agree on the before value and on the area taken. The entire seventy thousand dollar gap sits in one judgement: whether the remainder is worth less because of what the taking did to it. Figures are illustrative.

A caution

Benefits, and the rule that varies by state

If the project increases the value of the remainder, states differ sharply on what happens. Some permit special benefits, those unique to this property, to offset severance damages but not the value of the land taken. Some permit offset against the whole award. A few prohibit offset entirely. General benefits shared with the surrounding area are almost never offset.

This is one of the places where the law genuinely differs by jurisdiction and where a general explanation stops being useful. Check the rule in your state before accepting an after value that claims the project made the remainder more valuable.

Questions about the method

What if only a small strip is taken

The method is the same. A narrow strip across a frontage can cause damage out of proportion to its area, by moving a boundary closer to a building, removing parking or changing an entrance.

Does the method apply to a total taking

No. Where the entire property is acquired there is no remainder and compensation is simply the fair market value of the whole.

Can the after value exceed the before value

In principle, where the project confers a substantial special benefit. In practice it is rare, and a report concluding it should be examined closely.

Who decides whether severance damages exist

The appraiser forms the opinion; if the parties disagree, the court or commission decides on the competing evidence. The before and after structure means the question is always framed as a difference between two values.

Get a valuation question answered

If an offer has arrived and the number does not match what you believe the property is worth, the appraisal behind it is the place to look. Start with the pages below.

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