Dimunition in Value

[xm72mhd]

Does anyone have info concerning dimunition in value triggered by an announced public improvement. I am not looking for info concerning measuring dimunition due to the actual materialization of the plan, but that due simply to the announcement itself.

Thanks

 

[beowulf]

This issue is often a tempest for argument in circuit courts. Courts often limit testimony of any values based upon sales of properties within the scope of the project. This Scope of the Project rule has been adopted by many state agencies which prohibit the appraiser from using sales within the blighted corridor. In instances where the value of properties affected is enhanced by the announcement, I've seen the courts rule that the property owner is entitled to the benefit of the announcement, especially if there is evidence that property values along the corridor have increased due to the announcement. The court's view is that a property owner subject to a condemantion action is entitled to the same compensation as others would be from the future benefit of the project. The Lum Library at the Appraisal Institute has extensive articles on the subject.

 

[xm72mhd]

Thanks Lee

 

[PL1957]

Gideon Kanner has written tons of material on condemnation blight that may be useful.

 

[CANative]

Other jurisdictions have ruled that unfounded fear is not a proper consideration because the damage was not caused by the condemnor's taking, but rather by "the ignorance, prejudice or folly of those who wrongly conceive and believe that it will cause them damage."

Florida Power & Light Co. v. Jennings, 518 So.2d 895 (Fla. 1987)

Does your case need a legal instruction to proceed?

 

[Brian Weaver]

About ten + years ago, in a Chicago suburb, there was a "rumor" that public housing was slated for a large parcel. For about eight months...prices remained flat and properties very near to the supposed "project" sat with no offers. It became apparent that the rumors were unfounded and suddenly things began to sell.

I kept no data on the sales...or lack thereof...the reports I did in the nearby condo complex were shredded in 2000.

But...that's what happened.