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What contributes to fair market value?

On Behalf of | Oct 16, 2021 | Eminent Domain

If the government seeks to take your land through eminent domain, they must compensate you fairly. They cannot give you just any offer for your property. You should receive an amount that reflects the proper value of your land. Often, property valuation in eminent domain cases draws from the fair market value of the property in question.

FindLaw explains that fair market value depends on different factors, generally the specific characteristics of your property. If you understand all the different variables that make your land valuable, you can come up with the proper price for your property.

Contributions to fair market value

You probably know that the size of your land will contribute to your property’s value. Fair market value can also turn on how much you have developed your land, like whether or not you have built housing or cultivated canals or roads. Whether people and vehicles can easily access your land and how the government has zoned your property may also increase its value.

Unique property characteristics

Also keep in mind that if your property is different from all other properties in the area, your land may be more valuable than comparable properties. In addition, even if you have not developed your land much or at all, do not discount that the potential use of your land may also increase your fair market value.

Non-contributing factors

You might want the government to compensate you for the time and effort you need to move off your property or the emotional stress of moving. However, such factors are probably unlikely to contribute to your property value. The specific characteristics of your land are more likely to make a difference as you determine the fairest price for your property.