From my experience the government entity will absolutely low ball the offer. On a related note, I have experienced another approach on eminent domain. We worked a contract for a govt entity that needed to expand. The area was 70 year old residential lots, probably 80% abandoned and lots cleared. They bought what they could and then had the holdouts, bout 50-60 home still being lived in.

They put out a contract which we won to build lots on non-adjacent land the govt entity owned and the homeowner would get the new house on new land if they deeded over their existing property. They had run the numbers and paying us to build a new house was cheaper and MUCH quicker than going through eminent domain. It is unique approach I had not seen before.

For the OP, I would most certainly heed the advice above to hire a lawyer to extract max value and for their experience in your rights, the process, and concessions that others mentioned regarding future development of your land.

Edited to add: I had not seen BQ04's response which I essentially stated verbatim to your 1st sentence.

Without the power of eminent domain, we would be a 3rd world county infrastructure-wise. It's a necessary evil, and just compensation must be provided. Landowners have plenty of rights in the process and appeals often yield values well over what the property would be worth on the open market. Just because one landowner doesn't hold the power to thwart an entire public works project because they don't like it doesn't mean the government holds all the rights. They are going to take the land, but there's plenty you can do to help yourself.

As for lowballing, there is zero incentive for the appraiser. If the appraiser lowballs they risk costing the client many times over the savings in time and legal fees taking all the parcels to commissioners hearings. Appraisers often err on the side of the landowner when deciding what to provide as compensation. One thing that would honestly help most landowners is cooperation. If you provide costs for items on the property or improvements, the appraiser will almost surely use it. You can provide your own contractors as references for cost estimates too. Often times landowners are too pissed at the government and think withholding from the appraiser is some kind of strategic move. It's not unless you're hellbent on appealing before you even receive an offer.

The appraiser is never compensated based on returning specific values for a project, as that is illegal. If a project is over budget after the appraisals are turned in, it's up to the client to figure out where to go from there. That's why acquiring the land is step number 1.

Anyone reserves the right to try and make the government pay up. Just don't act like there some coordinated effort to tender lowball offers and screw people over. That's nonsense and gives the OP the wrong expectations going into this situation. They should do whatever benefits them the most, but they need an accurate expectation of what the process is actually like.

You've made this comment more than once in some fashion,

Quote:

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appeals often yield values well over what the property would be worth on the open market

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That is total BS. You are telling everyone a governmental entity is going to pay what the open market will pay to develop and make profit on a piece of property? Are you George Strait with ocean front property in Arizona? If that was the case....why would condemnation be needed?

That is not their business. Oil and water and they don't mix.

BQ04 said:

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In my experience, the govt absolutely low balls the value. Without a doubt in my mind. The appraisers know who they work for, their "comps" shape the argument to the same ends.

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As someone who works for the condemnors for a living, and have been since I graduated from A&M, I can tell you this is 100% horse***** Condemnors want values that are well supported by the relevant market data. Low-ball appraisers may have been the norm 30-40 years ago, but I can assure you that is no longer the case. And condemnors really don't want to take a case to a hearing and then trial because it is expensive and there's a factor of uncertainty. That's why in general, only about 10-20% of properties on a given project go to a hearing, and less than 10% of those go to trial. Sometimes you just have to go to condemnation to get clear title because of unprobated wills (if you own real property, get a damn will and make sure someone will probate it after you're dead), or people just flat refuse to acknowledge the process.
There are times that people do get screwed, but that's because of either existing case law or statutes where my hands are tied. Compensation for native trees is one of those problems I have to constantly deal with. And when you dig into the case law, it's often the case that a decision that screws the landowner is because a landowner tried to get greedy and got slapped down by the Texas Supreme Court and set a bad precedent.

How many offers on average would you say a property owner receives from their first letter in the mail to "final offer"?

Too many variables to give a good answer, but at a minimum, two are required by statute (initial and final offer). I've seen parcels settle on the first counter-offer, and parcels that went back and forth several times because there were several areas of agreement that both sides knew they were close enough to settle. I've also seen counter-offers that were so outlandish that the condemnor just did the bare minimum required and went straight to condemnation.

That's a fair/good faith answer to the question. In my opinion it is indicative of low-ball offers being somewhat common in the condemnation process. The first offer is almost always terrible. Invariably some uninformed/unrepresented landowners will take it and pushy ROW agents don't help the situation. The condemnation process is complex and it moves very fast and every party the property owner encounters has a vested interest in moving it along as quickly and expediently as possible. From the property owner perspective speed isn't a great thing, they are being forced to exchange a non-fungible piece of property for money and I don't think that process should be rushed and they shouldn't go about it unrepresented. We can appreciate roads, utilities and pipelines and at the same time hold private property right sacred. The two are not mutually exclusive.

I hear what you are saying, but if a legit appraisal is delivered at $35k, then condemnation folks will offer $30k. What they will NOT do is offer $40k. Even though in an offer to sell at "market" may yield $40k, $45k, etc.

Since you are constricting the market of buyers, it will inherently give the purchaser the upper hand.

So from my perspective, the condemnation entity is primarily incentivized by offering lower. I will caveat that in hold outs, value of new project, timeline of new project, and vital importance of new project may result differently.

But if challenged, the court is going to side middle of the road. So $35k no matter if that helps state or citizen.

HTownAg98 said:

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BQ04 said:

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In my experience, the govt absolutely low balls the value. Without a doubt in my mind. The appraisers know who they work for, their "comps" shape the argument to the same ends.

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As someone who works for the condemnors for a living

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In other words, the government.

I would suggest experiencing the other side at least once. It is an awful experience that the "condemnor" forces upon you.

fka ftc said:

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I hear what you are saying, but if a legit appraisal is delivered at $35k, then condemnation folks will offer $30k. What they will NOT do is offer $40k. Even though in an offer to sell at "market" may yield $40k, $45k, etc.

Since you are constricting the market of buyers, it will inherently give the purchaser the upper hand.

So from my perspective, the condemnation entity is primarily incentivized by offering lower. I will caveat that in hold outs, value of new project, timeline of new project, and vital importance of new project may result differently.

But if challenged, the court is going to side middle of the road. So $35k no matter if that helps state or citizen.

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But an offer to sell at market may result in a lower value? You can't just assume it will be higher than the appraisal value. Not to mention there's an extra premium being given as a seller would no longer pay out agent fees.

Insist on the easement being on the edge of one side of your property. Don't give in. Make the city take it to condemnation and hire an eminent domain attorney. They don't want to take the time to go to a hearing in today's world so perhaps they will agree to go down one side.

If it goes thru the middle, make sure you have the right to cross with a street some day. And heavy equipment.

We have had easements greatly reduce the value of our property. It takes a good attorney to fight for the diminished value on the remainder of the tract. The takers never offered diminished value in our cases.

BQ04 said:

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HTownAg98 said:

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BQ04 said:

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In my experience, the govt absolutely low balls the value. Without a doubt in my mind. The appraisers know who they work for, their "comps" shape the argument to the same ends.

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As someone who works for the condemnors for a living

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In other words, the government.

I would suggest experiencing the other side at least once. It is an awful experience that the "condemnor" forces upon you.

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I don't work for the government, I'm in private practice, though I will admit that a large chunk of my billings are from the condemnors. I meet with the property owners on most of my appraisals; I've had them give me hugs, and I've had them cuss at me, and I thoroughly understand the process. It's why I have zero incentive to low-ball someone, because the condemnor doesn't really care what my number is. What they want is a number that is supported by the market, complies with the relevant case law and statutes, and compensates the landowner fully for their loss. The condemnors don't hire me because I low-ball landowners.

fka ftc said:

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I hear what you are saying, but if a legit appraisal is delivered at $35k, then condemnation folks will offer $30k. What they will NOT do is offer $40k. Even though in an offer to sell at "market" may yield $40k, $45k, etc.

Since you are constricting the market of buyers, it will inherently give the purchaser the upper hand.

So from my perspective, the condemnation entity is primarily incentivized by offering lower. I will caveat that in hold outs, value of new project, timeline of new project, and vital importance of new project may result differently.

But if challenged, the court is going to side middle of the road. So $35k no matter if that helps state or citizen.

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In practice, the offer above the appraisal is way more common then the offer below the appraisal. Some entities will turn over a copy of the appraisal with the initial offer. Others will wait until the final offer when they are required to do so by statute. Unless the condemnor is basing their initial offers on the appraised value by the appraisal district, the offer below appraisal almost never happens. (If you're ever involved in this, ask what the initial offer is based on. If it's based on the assessed value, throw it in the trash and compel an appraisal; it's your right to do so.)
What you will see is an offer to donate the property, and these are sometimes beneficial if you're looking for a tax write-off or doing a 1033 exchange. But they are rare.

HTownAg98 said:

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fka ftc said:

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I hear what you are saying, but if a legit appraisal is delivered at $35k, then condemnation folks will offer $30k. What they will NOT do is offer $40k. Even though in an offer to sell at "market" may yield $40k, $45k, etc.

Since you are constricting the market of buyers, it will inherently give the purchaser the upper hand.

So from my perspective, the condemnation entity is primarily incentivized by offering lower. I will caveat that in hold outs, value of new project, timeline of new project, and vital importance of new project may result differently.

But if challenged, the court is going to side middle of the road. So $35k no matter if that helps state or citizen.

---

In practice, the offer above the appraisal is way more common then the offer below the appraisal. Some entities will turn over a copy of the appraisal with the initial offer. Others will wait until the final offer when they are required to do so by statute. Unless the condemnor is basing their initial offers on the appraised value by the appraisal district, the offer below appraisal almost never happens. (If you're ever involved in this, ask what the initial offer is based on. If it's based on the assessed value, throw it in the trash and compel an appraisal; it's your right to do so.)
What you will see is an offer to donate the property, and these are sometimes beneficial if you're looking for a tax write-off or doing a 1033 exchange. But they are rare.

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HTownAg98 - Pretty sure I know who you are from your posts here and if I am right, the beard was looking glorious today.

For the OP, I have done well over a thousand condemnation cases, probably the most of any person in the State of Texas. (And now HTownAg98 knows who I am) There is a LOT of really bad info on this thread. You should hire an attorney/appraiser/land planner/engineer and quit getting your legal advice from a message board, especially if you are serious about developing the land one day. You can really screw this one up bad. Development is not a game for amateurs.

Stan Crowch said:

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How many offers on average would you say a property owner receives from their first letter in the mail to "final offer"?

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Exactly One if I am the PM or Attorney

That was literally the leading piece of advice on the first page of the thread. The rest has been discussion about eminent domain in general.

Seriously

knoxtom said:

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HTownAg98 said:

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fka ftc said:

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I hear what you are saying, but if a legit appraisal is delivered at $35k, then condemnation folks will offer $30k. What they will NOT do is offer $40k. Even though in an offer to sell at "market" may yield $40k, $45k, etc.

Since you are constricting the market of buyers, it will inherently give the purchaser the upper hand.

So from my perspective, the condemnation entity is primarily incentivized by offering lower. I will caveat that in hold outs, value of new project, timeline of new project, and vital importance of new project may result differently.

But if challenged, the court is going to side middle of the road. So $35k no matter if that helps state or citizen.

---

In practice, the offer above the appraisal is way more common then the offer below the appraisal. Some entities will turn over a copy of the appraisal with the initial offer. Others will wait until the final offer when they are required to do so by statute. Unless the condemnor is basing their initial offers on the appraised value by the appraisal district, the offer below appraisal almost never happens. (If you're ever involved in this, ask what the initial offer is based on. If it's based on the assessed value, throw it in the trash and compel an appraisal; it's your right to do so.)
What you will see is an offer to donate the property, and these are sometimes beneficial if you're looking for a tax write-off or doing a 1033 exchange. But they are rare.

---

HTownAg98 - Pretty sure I know who you are from your posts here and if I am right, the beard was looking glorious today.

For the OP, I have done well over a thousand condemnation cases, probably the most of any person in the State of Texas. (And now HTownAg98 knows who I am) There is a LOT of really bad info on this thread. You should hire an attorney/appraiser/land planner/engineer and quit getting your legal advice from a message board, especially if you are serious about developing the land one day. You can really screw this one up bad. Development is not a game for amateurs.

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I don't have a beard, and I don't know who you are.

Quote:

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You should hire an attorney/appraiser/land planner/engineer and quit getting your legal advice from a message board, especially if you are serious about developing the land one day. You can really screw this one up bad. Development is not a game for amateurs.

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This.

HTownAg98 said:

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knoxtom said:

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HTownAg98 said:

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fka ftc said:

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I hear what you are saying, but if a legit appraisal is delivered at $35k, then condemnation folks will offer $30k. What they will NOT do is offer $40k. Even though in an offer to sell at "market" may yield $40k, $45k, etc.

Since you are constricting the market of buyers, it will inherently give the purchaser the upper hand.

So from my perspective, the condemnation entity is primarily incentivized by offering lower. I will caveat that in hold outs, value of new project, timeline of new project, and vital importance of new project may result differently.

But if challenged, the court is going to side middle of the road. So $35k no matter if that helps state or citizen.

---

In practice, the offer above the appraisal is way more common then the offer below the appraisal. Some entities will turn over a copy of the appraisal with the initial offer. Others will wait until the final offer when they are required to do so by statute. Unless the condemnor is basing their initial offers on the appraised value by the appraisal district, the offer below appraisal almost never happens. (If you're ever involved in this, ask what the initial offer is based on. If it's based on the assessed value, throw it in the trash and compel an appraisal; it's your right to do so.)
What you will see is an offer to donate the property, and these are sometimes beneficial if you're looking for a tax write-off or doing a 1033 exchange. But they are rare.

---

HTownAg98 - Pretty sure I know who you are from your posts here and if I am right, the beard was looking glorious today.

For the OP, I have done well over a thousand condemnation cases, probably the most of any person in the State of Texas. (And now HTownAg98 knows who I am) There is a LOT of really bad info on this thread. You should hire an attorney/appraiser/land planner/engineer and quit getting your legal advice from a message board, especially if you are serious about developing the land one day. You can really screw this one up bad. Development is not a game for amateurs.

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I don't have a beard, and I don't know who you are.

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Thought you were a well known Aggie ROW appraiser

There's a lot of well known Aggie ROW appraisers.

Yes there are a lot of well known Aggie ROW appraisers. But only one with a massive beard.

Following

HTownAg98 said:

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knoxtom said:

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HTownAg98 said:

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fka ftc said:

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I hear what you are saying, but if a legit appraisal is delivered at $35k, then condemnation folks will offer $30k. What they will NOT do is offer $40k. Even though in an offer to sell at "market" may yield $40k, $45k, etc.

Since you are constricting the market of buyers, it will inherently give the purchaser the upper hand.

So from my perspective, the condemnation entity is primarily incentivized by offering lower. I will caveat that in hold outs, value of new project, timeline of new project, and vital importance of new project may result differently.

But if challenged, the court is going to side middle of the road. So $35k no matter if that helps state or citizen.

---

In practice, the offer above the appraisal is way more common then the offer below the appraisal. Some entities will turn over a copy of the appraisal with the initial offer. Others will wait until the final offer when they are required to do so by statute. Unless the condemnor is basing their initial offers on the appraised value by the appraisal district, the offer below appraisal almost never happens. (If you're ever involved in this, ask what the initial offer is based on. If it's based on the assessed value, throw it in the trash and compel an appraisal; it's your right to do so.)
What you will see is an offer to donate the property, and these are sometimes beneficial if you're looking for a tax write-off or doing a 1033 exchange. But they are rare.

---

HTownAg98 - Pretty sure I know who you are from your posts here and if I am right, the beard was looking glorious today.

For the OP, I have done well over a thousand condemnation cases, probably the most of any person in the State of Texas. (And now HTownAg98 knows who I am) There is a LOT of really bad info on this thread. You should hire an attorney/appraiser/land planner/engineer and quit getting your legal advice from a message board, especially if you are serious about developing the land one day. You can really screw this one up bad. Development is not a game for amateurs.

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I don't have a beard, and I don't know who you are.

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I heard it's real, and it's spectacular.