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Right of way appraisal question

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Doug in NC

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
How does a local government go about determining what compensation should be for a right-of-way property taking. I am not sure of the facts yet, but I have been told by a realtor that .03 acre of a .16 acre lot is proposed to be taken by a town for a road widening project. I need to determine what effect this will have on the value of the property being reduced. Thanks.

Doug
 

Steve Owen

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Missouri
If your question is how does the government go about a taking? Then the answer is varied, depending on the level of government and the specific government. In my area, the state highway commission does actual appraisal work before determining a price for the taking: they appraise the property before and after the taking and the difference is the offered price (that is very simplified, of course). However, if it is the county, they hire a board of three people (often political cronies) who go to the site, look at the property and determine what the county will offer. they don't necessarily have to be appraisers and they don't necessarily do any appraisal work. The city falls somewhere in between these two approaches.
 

EDWARD BERRY

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Arkansas
MAKE SURE YOU GET THE FINAL ELEVATIONS.


SOMETIMES IT IS NOT THE SIZE OF THE TAKING BUT THE "AFTER"

ED in Arkansas.
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
You have to value it? Why?

You have been counseled well so far.

If it is a federal highway, the process may likely be different than state (We are not talking about county yet). The "yellow book" may or may not be relevant to the transaction.

You need to post a little more information on this issue.

I wouldn't touch it yet. This is a partial acquisition, and if you have not had at least a class, I would pass. This is special stuff--not many appraisers do this kind of work IRWA has a class, 401, which is a 4 day class on this topic--it is considered the best class on the topic.

Here in Montana (and the greater area), normally a lead appraiser will co-op with a very knowledgable and active appraiser in the specific area with more specific knowledge of the type of properties involved.
 
Joined
Jan 16, 2002
Professional Status
General Public
State
North Carolina
Doug

North Carolina has two different laws for valuing property for takings relating to a highway. One if it is a NC DOT project and another law for cities and other condemning authorities. The technical solution is different and can lead to very different value conclusions.

If you wish to know more, post me back so we can set a time to talk on the phone. I'll be happy to mentor you on this.

Regards

Tom Hildebrandt GAA
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
General comment: I have noticed a significant variance in procedures. Now this applies to Texas but well may apply in your area. First, if it's the state, they make an offer and it is not subject to negotiation. If you don't like it, you can take it to a commissioners hearing. There you don't need an attorney but you do need facts to support your case. Second, cities and counties play loosie-goosie with values. I have seen the offer made, then a significant upwards negotiation to avoid commissioners hearings, especially in this county. The commissioners are all attorneys and they play back-scratch with each other, so that it doesn't matter how rediculous the property owners value request is, they will split the difference with the city/county/state.

That said, I would spend $75 for a half hour with an attorney that does this type of stuff regularly to get a feel how it works in your county. Second, just because it's a small amount of taking, it may significantly affect your value (proximity to structures, increased traffic flow, lack of remaining utility of the site, etc).

Good luck
Roger Strahan, SRA
 

Doug in NC

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Thanks Tom, but I have declined the request since I am unknowledgeable in this area. I do look forward to taking some classes this year on the subject though. I have gotten several right of way requests in the past year, I think I need to learn how to do this type of work.
 
Joined
Jan 16, 2002
Professional Status
General Public
State
North Carolina
Doug

The IRWA actually teaches classes in North Carolina, get a hold of their schedule.

Regards

Tom Hildebrandt GAA
 
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