When the state wants to lay claim to your real property for a large project, like high-speed railways or road expansions, you face condemnation. Residential property, unimproved land and even commercial properties are all at risk of claims brought under eminent domain laws in Texas.
Even if you want to keep the property despite local development, you may not have a choice. The state can initiate legal proceedings and force you to transfer your property even if you don’t want to sell it. Typically, those facing condemnation under eminent domain laws have the right to demand the fair market value of their property from the party compelling the sale.
However, the recent drastic changes in real estate around the Houston area and throughout Texas may make it harder than usual for property owners to receive appropriate compensation for their property.
The market has seen massive growth
In recent years, properties around the Houston area have reported double-digit increases in property value. Homes now routinely sell for just under half a million dollars, which has helped increase the value of nearby agricultural land, as well as commercial properties. Local newspapers report that the average homeowner has acquired thousands of dollars worth of equity just due to the increase in overall property values.
Unfortunately, appraisers may not set a price for the property that reflects how competitive the market has been in recent years. Now that there have been several successive increases to crucial interest rates, there could be changes on the horizon for the real estate market. Those facing condemnation during times of rapid price changes or short-term market corrections may not receive what they could for the sale of the property.
How do you get fair compensation when facing the loss of your real property?
If you want to counter an offer made by an entity trying to use eminent domain to force the sale of real property, you may have to go to court. To make a compelling case in court, you will need professional help establishing an appropriate fair market value that you can use to counter the offer made by the party that wants to purchase the property.
Having the right support when facing condemnation due to an eminent domain claim will reduce the likelihood that you will take a loss when negotiating compensation for the property.