All real property is unique. Each parcel of land be will uniquely different than other parcels, even in the same neighborhood. So too will be the houses and buildings that sit on the land, even if the floorplans are the same.
Nonetheless, with most residential properties there will be some consensus among property appraisers as to the fair market value of property within a relatively small range. Normally this process is done by considering recent sales in the same area, and then determining how the property being appraised compares with the properties that were sold.
But what happens if there are no recent comparable sales of similar properties? How then is fair market value determined?
Fair Market Value of Unique Property Can Be Determined, But There Will Likely be a Larger Difference of Opinion as to What the Fair Market Value Should Be
Let’s suppose a landowner has a large parcel of land in a residential area – perhaps 100 acres – and there are no recent comparable sales. Appraisers familiar with the local market may agree that value of the land is somewhere between $5 million and $10 million. At a $5 million price, an appraiser may feel that the land would have no problem being sold quickly to any of number of buyers. One appraiser may believe that the land might fetch a price as high as $10 million, but this may be less certain. So how much is the land actually worth?
If this scenario describes your situation, you can be assured that the government may offer far less than the high value placed on the property. You might, in fact, be offered a price that is more at the low end, which would be a relative “steal.”
Your interests will directly conflict with the government’s interests – you want a high price, the government wants a low price. That’s where we help landowners.
Using Experts to Prove Fair Value
We rely on land and property experts to help make the cases of our clients. With years of experience, experts can provide a thorough analysis of the valuation of any property, and a reasoned analysis of how such valuation was determined.
We use experts to prove the cases of our clients, and to positon them to receive full value through negotiation or trial. Let us help you.