How Is Fair Market Value Determined?
What is “Fair Value”?
Fair value is usually considered to be the fair market value – that is, the highest price a willing buyer under no particular pressure to buy would pay for the property based upon its highest and best use, were it in the hands of a willing seller under no particular pressure to sell. According to Florida law, the property value shall be assessed as of whichever comes first: the date the title passes or the date of the trial. The value of the property is exclusive of any rise or fall in value based on the knowledge of the impending public benefit project for which the property is being condemned. If the parties do not agree on the value of the property or other resulting damages, the parties will typically use appraisers, engineers, economists and/or land use experts to assist in the negotiation process. At the Florida Property Rights Law Firm, we have the experience necessary to know, for example, when to call an environmental engineer as opposed to a hydrological engineer. We have worked with many experts and know which ones can help you win your case.
If the case is litigated, both sides will ordinarily present expert testimony from numerous experts as to the “true” value of the property and resulting damages as a result of the taking.
In determining fair market value, real estate appraisers customarily use:
- The comparable sales approach, based on recent sales of property similar to the property being appraised
- The income approach, based on capitalization of the income that the property is capable of producing through its highest and best use
- The cost approach, based on the cost of producing a building less depreciation and obsolescence plus the fair market value of the lot
Because it is difficult to stop a government entity from condemning your property, your best chance of success is in ensuring that you are adequately compensated for your property. This includes determining the best fair value for your property as well as full compensation for any ancillary damages incurred as a result of the condemnation, including potential tax consequences resulting from losing the Amendment 10 “save our homes” tax protection act and any other changes to eminent domain law.
At the Florida Property Rights Law Firm we have the experience, the connections, and the determination to get you the best possible compensation for this intrusion of government power.
Our condemnation attorneys represent private property and business owners throughout the State of Florida. We don’t charge for an initial consultation and, in most cases, the government has to pay your court costs and our attorneys’ fees. Please call or email us today to schedule your initial consultation.