Property types
Valuing a home in a condemnation
Residential property has the deepest pool of comparable sales of any property type, which makes the before value relatively easy and throws almost all the disagreement into what the taking did to the remainder.
Method
Sales comparison, and then the harder question
For the before value the sales comparison approach is almost always sufficient. Residential markets generate enough transactions that genuinely comparable sales exist, adjustments are modest and the conclusion is usually within a narrow range between competent appraisers.
The after value is the contested figure. A house that was forty feet from a two lane road and is now eighteen feet from a four lane road is a different product in the market, and the question is how much less buyers will pay for it. That is answerable with evidence: sales of comparable houses similarly positioned on similar roads. Where an appraisal concludes no loss without looking for that evidence, it has assumed rather than found the answer.
Checklist
What owners should make sure the appraiser knows
Septic and well locations
A taking that removes a drain field or reserve area can be far more consequential than its area suggests.
Mature planting and screening
Established trees and hedges that screened the road take decades to replace and the market prices that.
Outbuildings and hard standing
Garages, workshops, stores and parking areas are part of the property and are frequently omitted from a drive by description.
Drainage behaviour
How water moves across the site, and what a new grade or embankment will do to it.
Access in winter or in poor weather
A relocated driveway on a slope can be usable in July and not in January.
Non visible easements and rights
Shared drives, rights of way and utility routes that affect how the remainder can be used.
Questions from homeowners
The road will be much closer to my house. Is that compensable
Yes, where it reduces what buyers will pay, and it usually does. This is classic severance damage and it is measured by comparing the remainder against market evidence rather than by a rule of thumb.
What about the trees they are removing
Trees are valued through their contribution to the property\u2019s value rather than as nursery replacement cost. Mature screening that cannot be replaced for twenty years contributes more than a schedule of plant prices suggests.
My home is worth more to me than the market value
Almost certainly, and that difference is not compensable. Value peculiar to the owner is excluded by the definition of fair market value. Relocation assistance addresses some of the practical cost of moving, separately from the valuation.
They are taking part of my garden. Surely that is just the land value
Only if the house is unaffected. If the remaining garden no longer provides privacy, screening or usable outdoor space, the loss is larger than the land area alone.
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.