Eminent Domain Appraisal question

[Busy Bee]

Eminent Domain Appraisal question

I live in GA and spoke to a lawyer yesterday concerning a utility wanting Eminent Domain easement on my Mom's property ( her residence). No current easements.


The lawyer mentioned getting the appraised value. He said to make sure the utility uses the "5 Step Process" to determine Consequential Damages. I would like to know what the "5 Step Process" is.


He also said that Mom should get compensation for "Fee Simple Interest- right of way". Is this something that is usually tied with Eminent Domain Appraisals?


By the way, no "Offer of Compensation" has been made.
We have NOT been shown an appraisal.


Lawyer wants me to make the first move, but I need to know what these things are before I mention them to the utility rep.


Can someone PLEASE shed a little light on this.


Thank,
Busy Bee

 

[Michigan CG]

What kind of easement do they want? Is it above or below ground? Where is the easement? Does it affect any current improvements? Does it affect any possible future improvements?

I think you are a little early in talking to an attorney.

I do not think you should make the first move; I don't think you even need the attorney yet.

BTW I have performed 100's of eminent domain appraisals.

 

[Mountain Man]

We used to do a lot of DOT right of way appraisals, but since GA DOT used the lowest bidder now we do more work against the DOT. Are you ready to go to court and prove DOT's appraiser is wrong? If you are going to peruse this, expect to pay a retainer of $2,000 and hourly charges. It's not uncommon for our bill outs to be 5 thousand after an appraisal, court preparations and testimony time. Just wanted you to be ready for the potential bill because a regular residential appraiser can't handle this.

 

[Busy Bee]

What kind of easement do they want? Is it above or below ground? Where is the easement? Does it affect any current improvements? Does it affect any possible future improvements?

I think you are a little early in talking to an attorney.

I do not think you should make the first move; I don't think you even need the attorney yet.

BTW I have performed 100's of eminent domain appraisals.

They want perpetual, non-exclusive easement in, on, over, under, across and through the lands. . .

Right now they will be putting in a 24" or larger sewer pipe and man hole on property.
Wouldn't the easement (new burden) and man hole devalue the property. Proposed 5' tall metering station also.

The easement area is the parking area for a basement apartment (not currently rented, but separate electric and separate trash has been maintained for 40 years with current owner as a selling factor. City no longer allows new basement apartments.

The easement area is next to a creek that has block walls 4-5' tall that was built in the 1950's. A wooden walking bridge from the apartment parking to the apartment. Digging that deep to an old wall may weaken it or damage the bridge. Again, not sure if this factors into an appraisal.

The owner is an elderly widow and the rep handed her the papers and wanted her to sign right then. He said they won't give her anything for the land. She didn't sign.

We spoke to an attorney, haven't hired him yet. He was so vex at the situation that he talked with us for 2 hours no charge. He thinks we maybe able to handle this.

 

[Busy Bee]

We used to do a lot of DOT right of way appraisals, but since GA DOT used the lowest bidder now we do more work against the DOT. Are you ready to go to court and prove DOT's appraiser is wrong? If you are going to peruse this, expect to pay a retainer of $2,000 and hourly charges. It's not uncommon for our bill outs to be 5 thousand after an appraisal, court preparations and testimony time. Just wanted you to be ready for the potential bill because a regular residential appraiser can't handle this.

Thanks for the info on the cost if we would go to court. That will be a great factor in our decision.

 

[JTip]

What kind of easement do they want? Is it above or below ground? Where is the easement? Does it affect any current improvements? Does it affect any possible future improvements?

I think you are a little early in talking to an attorney.

I do not think you should make the first move; I don't think you even need the attorney yet.

BTW I have performed 100's of eminent domain appraisals.

Exactly what MichCG said. Saves a lot of typing.

 

[Busy Bee]

As far as making the first move, the rep emailed me this week that if we didn't sign the papers that he would turn it over to the law department. I need to keep the lines of communication open so that is why I'm responding to him today.

I am basically asking them for an offer of compensation and how they determined the value (assume they have an appraisal, but not sure that has been done).

Have you ever had an appraisal for Eminent Domain that would say the property is worth zero? And that the damage for the remaining part of the property is also zero?

Thanks for your help.

 

[JTip]

Guess I did not see your response yesterday, it's early.

I would WAIT until you see the appraisal AND offer of compensation. You really won't know the full extent of the easement until you see the FINAL plans (there are dozens of editions). Right now it's all speculation. Will they do this, will they do that. Will they acquire 100 feet or will they take the whole property? You won't know until the plan is final.

Be patient and wait to see the final plan. Your state may offer you some 'fee help' towards attorney fees/survey/appraisals. You will not get only one day to decide if you want the offer, you will have ample time to counter.

 

[Busy Bee]

Guess I did not see your response yesterday, it's early.

I would WAIT until you see the appraisal AND offer of compensation. You really won't know the full extent of the easement until you see the FINAL plans (there are dozens of editions). Right now it's all speculation. Will they do this, will they do that. Will they acquire 100 feet or will they take the whole property? You won't know until the plan is final.

Be patient and wait to see the final plan. Your state may offer you some 'fee help' towards attorney fees/survey/appraisals. You will not get only one day to decide if you want the offer, you will have ample time to counter.

Appreciate your help. My posts are delayed since I'm a newbie and they don't know what I may or may not say. I understand their caution.

I was there the second visit the City rep had with my Mom. The rep told my elderly (over 80 year old) Mom that her property is worth nothing. I did ask him what he based that on and what did the appraisal say. He said that he didn't have an appraisal because that costs a lot of money---looking at me as if we would need to pay.

On appraisals, what does term "Fee Simple right of way" mean? The lawyer mentioned that I should say that as well as "5 Step Process". Fine and dandy to mention, but I can't bluff, I have to understand what I'm trying to convey.

Any help or direction towards help is greatly appreciated.

BB

 

[David Mescon]

As far as making the first move, the rep emailed me this week that if we didn't sign the papers that he would turn it over to the law department. I need to keep the lines of communication open so that is why I'm responding to him today.

I am basically asking them for an offer of compensation and how they determined the value (assume they have an appraisal, but not sure that has been done).

Have you ever had an appraisal for Eminent Domain that would say the property is worth zero? And that the damage for the remaining part of the property is also zero?

Thanks for your help.

Let 'em "turn it over to the law department." Once you see where they're really coming from you can figure out how to proceed. Depending upon the difficulty of the appraisal, the fee could be quite high. Appraiser's typically charge hourly rates for these types of assignments, (in fact, I would be loath to hire one who didn't, because that would likely be an indication of lack of competence to perform this type of assignment). Expect to pay $150 per hour or more for the appraiser's time. I'm not trying to be pessimistic, but I've never taken on an inverse condemnation case with fees that didn't total over $20,000 by the time we were through with the appraisal, and all other related fees. The appraisal fee itself may not be too high, (possibly under $10,000), but unless the utility company rolls over when they see it, and makes a reasonable offer, the ensuing battle could involve a great deal of time. Best of luck!