Eminent Domain Appraisal

What Is an Eminent Domain Appraisal?

An eminent domain appraisal is a professional property valuation conducted when a government entity exercises its power of eminent domain to acquire private property for public use. The appraisal establishes the property's fair market value, which forms the basis for the just compensation the property owner is entitled to receive under the Florida and U.S. Constitutions.

Appraisal Standards

Florida eminent domain appraisals must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and consider:

• Highest and best use: The most profitable legal use of the property, not necessarily its current use
• Comparable sales: Recent sales of similar properties in the area
• Income approach: For income-producing properties, the capitalized income stream
• Cost approach: The cost to replace improvements less depreciation, plus land value

The Appraisal Process

• The condemning authority retains an appraiser and obtains a valuation
• The authority makes a written offer based on its appraisal
• The property owner may accept the offer or negotiate
• If no agreement is reached, the authority files a condemnation lawsuit
• The property owner retains their own appraiser to prepare a competing valuation
• At trial, both appraisals are presented and the jury determines just compensation

Consequential Damages

When only part of a property is taken, the appraisal must also evaluate consequential damages to the remaining property, including reduced access, visibility, utility, or development potential caused by the taking.

Related Terms

• Eminent Domain — The government's power to take private property
• Encumbrance — Claims that may affect the property's value
• Environmental Site Assessment — Environmental evaluation during the taking

Barnes Walker Eminent Domain

Barnes Walker's attorneys represent Florida property owners in eminent domain proceedings, retaining independent appraisers to maximize just compensation for property takings. Request a legal inquiry for assistance.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC