Assemblage

[Terrel L. Shields]

Its just nice to see civil people with firing synapses kicking around a situation

really. or is that really?

It seems to be that under HBU, the dwelling is not a consideration. The eventual HBU will be for a parking lot. And so what is the value of a parking lot? If you value the house as a house...(i assume you have to to determine that HBU) then it is impacted by an unfavorable neighborhood influence (the lot next door). That external obsolescence applied against the dwelling is offset, however, (likely) by the increased value of the land as if vacant. Seems you should find some houses that sold to be converted by an expanding hospital, municipal agency, etc. into other uses (preferrably parking lots). I bet you would find that the typical sale is somewhat more than the sale of houses say 2 blocks away that simply sold for rentals or SFR. Zoning is no impediment to a public agency.

 

[Farm Gal]

Another Suggestion - Given whatever unusual circumstances surrounded the reason the house was not acquired in the original condemnation proceedings along with the other homes... is it possible to get instruction to appraise the property on a retrospective basis?

Such that you were considering the PAST value as if it were being acquired at the same time frame as the other properties. Reading between the lines one could ***ume that the circumstances were beyond 'human' control and caused by legal issues. Some entities have quite a bit of leeway in their condemnation process...

If you were doing this as a hypothetical and restrospective it would be a lot easier to deal with ?

 

[Fred]

Zoning is no impediment to a public agency.

You might want to research that.

If you were doing this as a hypothetical and restrospective it would be a lot easier to deal with ?

That might be the way to go. This is why there is quite a bit of "appraisal consulting" and regular "consulting" in ROW assignments, especially when you client isn't the taker. They can argue the current condemnation blight was caused by the inverse condemnation that already occured.

That's part of the half of the case law they don't put in the Yellow Book.

 

[Rick Kulman]

Steve

PE alluded to it.

Project Infuence -- What is the law in the jurisdiction and how does it affect the valuation premise and methodology.

Assume your subject is in a redevelopment area. Once the area is declared blighted or in need of redevelopment what happens to property values?

At least here in NJ, that is why you can't use future sales within the redevelopment area. The valuation cannot be influenced by the project.

Rick

 

[Fred]

Steve

PE alluded to it.

Project Infuence -- What is the law in the jurisdiction and how does it affect the valuation premise and methodology.

True, but I went further. Inverse condemnation adds something to mere "influence." Also, he (PE is a he, right?) said to check the taking agency. I am saying to check case law independently.

In my jurisdiction that means "highest price" and an appraiser is essentially instructed by the court to give all benefit of the doubt to the property owner

They must have fun with that. I always construed the "highest price" definitions to be a reference to highest and bes use. Why would someone knowledgeable and not obligated pay more than the most likely price or going rate?

 

[Louis Pompeo]

Inverse Condemnation

Steve:

Read about half the posted replies, but not all. If I am being redundant here - I apologize.

It seems to me that you have a clear cut case of inverse condemnation caused by the project.

The subject property suffers a loss in value due to the project and the property owner is entitled to remuneration from the condemning authority. That would be the amount in value lost by creation of the project or a conveyance to the authority for fair market value.

Our jobs as appraisers is not to estimate "just compensation" per se - that is a matter for the courts. Our job is to estimate fair market value (or market value, which is synonymous) of the property, or the loss in value. This 'market value' may very well serve as the basis for 'just compensation.'

This can only be done utilizing the 'before and after' method. You will need to employ a hypothetical condition for the 'before' value, and then value the property 'as-is' for the after. Keep in mind that we also have to estimate "special benefits" and offset that figure against the value diminution/enhancement of the subject property.

If there are premiums to be estimated or paid, that is not our job. That is a matter for the courts to decide.

Keep it simple.

 

[Carnivore]

From the OP

"Case for Eminent Domain: Municipality is in need of expanded parking. Block has been improved with new parking lot completely surrounding three sides of the subject ( leaving the subject with street frontage only).

Issue: Highest and Best Use

corrected later to Potential Eminent Domain

------------------------------


Steven,

Interesting that you might think value added as a result of the prior takings.

Maybe they should seek a zoning change to possibly enhance the HBU of the site.

Do I smell consulting assignment!

 

[PropertyEconomics]

True, but I went further. Inverse condemnation adds something to mere "influence." Also, he (PE is a he, right?) said to check the taking agency. I am saying to check case law independently.

They must have fun with that. I always construed the "highest price" definitions to be a reference to highest and bes use. Why would someone knowledgeable and not obligated pay more than the most likely price or going rate?

Steven,

Condemnation certainly doesnt meet the test of a willing seller .. and to that end, the courts here have ruled that the owner is entitled to the highest price. Why wouldnt they be? They didnt ask for their property to be in the path of a taking area. In pure common sense terms it allows the owner to be compensated in the best possible manner.

 

[Dennis J. Black ASA IFAS]

Market value is the most Probable Price of the HIGHEST and BEST USE. Not some inferior use that is more prevalent. It seems here that the prior takings of surrounding properties led to a change in the H & B. If this parcel was not part of that project at that time then why should it not be compared to other "islands" that had a better use because of their H & B

 

[PropertyEconomics]

Market value is the most Probable Price of the HIGHEST and BEST USE. Not some inferior use that is more prevalent. It seems here that the prior takings of surrounding properties led to a change in the H & B. If this parcel was not part of that project at that time then why should it not be compared to other "islands" that had a better use because of their H & B

What if its Island location results in it having a lower value than it would have had were the project not there?