In last few posts I've discussed several different issues regarding Washington State eminent domain and how landowners can get more money for their property taken by eminent domain. The key thing to remember is that condemning authorities have someone on their side working for them, and you should too. Eminent domain is complicated, and you need a trusted ally.
Let me give you an example of how complicated the Washington State eminent domain process can be (and how much help having someone working for you can pay off). There was a family, let's call them the Smiths, who where having their property taken by eminent domain, in, for purposes of example only, Seattle. Now, this property didn't sit in Seattle proper, but right on the outskirts. The property consisted of 40 acres, rectangular in shape, and was used for agricultural purposes. The west property line adjoined the property line of the current highway 99 just as it left Seattle (remember this is hypothetical).
At some point the city of Seattle decided it needed to re-align highway 99 so that it no longer had any stop lights or stop signs. The only way to get on and off after this realignment was finished would be with on and off ramps - more like an expressway than a state highway. To do this Seattle went around and through a neighborhood where the design engineers decided it best fit. This ended up putting the new highway right through the middle of the Smith's property (called a severance in eminent domain speak), leaving 12 acres on one side and 14 on the other.
Although the Smith's were devastated that the new highway alignment went right through their property and that their Seattle land would be taken by eminent domain if they didn't settle, they were confident the city would make them a good offer for their property, including the loss in value to the property they would have left, since once the new highway was built it would be very hard to continue farming the land (remember there is no way to get across the highway from one part of the property to the other).
Normally appraisers don't have to account for the loss in value to any remaining property, much less one that has been cut in half. Traditionally they are tasked with determining the fair market value of the property to be taken. This means figuring out what a willing buyer and a willing seller in an open and competitive market would pay for the property. But in this case it is more complicated because of the severance.
In my experience, the way the property should be valued is to look at what the entire property would have been worth before the eminent domain taking, and then look at what the property remaining after the eminent domain taking, subtract the two, and learn your amount of just compensation (called a before and after analysis). But all too often appraisers will approach determining the value of the property after the taking by assuming the property owner would sell of the property to two different owners - one on one side of the new road and one on the other. And that may well be the case, but the appraiser is supposed to assume the property would be sold to one person. If you think about it this makes the property remaining much more valuable than if the Smiths had to sell their severed property to one owner (remember there is no way to get across the road from one property to another).
In my hypothetical, this is exactly what happened to the Smiths. The appraiser overvalued the remaining property, extremely lowering Seattle's offer of just compensation (the appraiser found ZERO damages to the remainder property). When the Smiths saw the offer from the city, they knew it was far too low. They knew the property they had left would be worthless. So they did what any prudent landowner should - they got help with their eminent domain taking. And what was the result? A substantially increased settlement of just compensation, with their property valued the way it was supposed to have been at the very beginning.
Monday
Washington State Eminent Domain | The Eminent Domain Process
If you are reading this, your Seattle, Olympia, Spokane, Yakima, Tacoma, or other Washington State property is probably being taken through the process of eminent domain. And although the acquisition agents representing the governmental agencies should have given you some information on the process, it is probably still a little overwhelming, and you might still have questions. Hopefully this answers some of your basic questions about losing your Washington State property to eminent domain.
As has already been discussed, the condemning authority's have professionals on their side helping them to get your property, and property owners should have professionals helping them too. Losing your land to eminent domain is a trying process, and you not only need help to get the most money for your land, but having helps actually tends to result in more money for your condemned land.
This process is similar to the process followed when you bought your property. Often a simple title search is completed to find out who owns the property, and the results are then inputted into a database identifying you as the property owner and assigning your land a parcel number. The title work will often also reveal any leases, mineral or otherwise, clouding the title of the property. If there are other property interest holders everyone will need to agree to the sale price (and the distribution of money) before a final agreement will be reached.
The first step, generally, in the appraisal process, is presenting the "problem" to the appraiser. A funny thing about this part of the process is that appraisers generally adhere to the rules and regulations prescribed by USPAP, the Uniform Standards of Professional Appraisal Practice. The only problem with that is that the rules relating to Washington State eminent domain valuation and just compensation is that often those rules go against the traditional practices of appraisers. Many times appraisers don't apply these rules when the initial appraisal is done, this can result in a much lower valuation should occur.
For example, the rule regarding property that is only partially taken is that you first determine the value of the entire property and then you value the value of the remaining property (including any loss in value occurring as a result of the loss of the property). So, if you have a large parcel of property in Spokane or Kinnewick, say 80 acres, and a new highway alignment is going to cut that right in half, what you will often find with an appraiser is that they will not attribute any loss in value to the remaining property. From their end, the remaining property is more value because it is now two parcels that can be sold of individually. But in truth there is probably substantial damage to the remainder, because you don't look at selling both halves separate, but what you could sell that land in Spokane County as a whole, with a highway running right through it.
As you might guess, if the appraiser messes this up, your property will be substantially undervalued. This, among other things, is why you should hire an expert to review your offer of just compensation so you can get the most money for your property taken by eminent domain.
When I worked for a government agency as their eminent domain attorney I ran into this problem all the time. I knew the weaknesses of our appraisals, and if landowner's hired someone experienced in eminent domain, they would soon see the weaknesses of our appraisal.
Once the offer is given to you, the negotiation process begins. This, in some cases, can include relocation benefits (generally if your house or business is being taken through eminent domain), but it generally includes a discussion regarding the value of the property and the damage accruing to the remainder. And make no mistake, there is a lot of room to negotiate the sale of your property to the government.
As has already been discussed, the condemning authority's have professionals on their side helping them to get your property, and property owners should have professionals helping them too. Losing your land to eminent domain is a trying process, and you not only need help to get the most money for your land, but having helps actually tends to result in more money for your condemned land.
Washington State Eminent Domain Process Begins with Title Work
Assuming the condemning authority has determined the amount of extra land it needs for its project, the next step it takes is to find out for sure who owns the property, if there are any tenants on the property, and if there are any leases (mineral or otherwise on the property), so they can make sure the right people are paid for the property (and so they make sure they get the property interest they want).This process is similar to the process followed when you bought your property. Often a simple title search is completed to find out who owns the property, and the results are then inputted into a database identifying you as the property owner and assigning your land a parcel number. The title work will often also reveal any leases, mineral or otherwise, clouding the title of the property. If there are other property interest holders everyone will need to agree to the sale price (and the distribution of money) before a final agreement will be reached.
Washington State Eminent Domain Process Part II - Appraisal
This is the meat of the entire process. A good appraisal results in you getting the money you deserve for your property. A bad appraisal results in you leaving money on the table that is rightfully yours (there is never a time when you get more money than you deserve from the appraisal - it just doesn't happen).The first step, generally, in the appraisal process, is presenting the "problem" to the appraiser. A funny thing about this part of the process is that appraisers generally adhere to the rules and regulations prescribed by USPAP, the Uniform Standards of Professional Appraisal Practice. The only problem with that is that the rules relating to Washington State eminent domain valuation and just compensation is that often those rules go against the traditional practices of appraisers. Many times appraisers don't apply these rules when the initial appraisal is done, this can result in a much lower valuation should occur.
For example, the rule regarding property that is only partially taken is that you first determine the value of the entire property and then you value the value of the remaining property (including any loss in value occurring as a result of the loss of the property). So, if you have a large parcel of property in Spokane or Kinnewick, say 80 acres, and a new highway alignment is going to cut that right in half, what you will often find with an appraiser is that they will not attribute any loss in value to the remaining property. From their end, the remaining property is more value because it is now two parcels that can be sold of individually. But in truth there is probably substantial damage to the remainder, because you don't look at selling both halves separate, but what you could sell that land in Spokane County as a whole, with a highway running right through it.
As you might guess, if the appraiser messes this up, your property will be substantially undervalued. This, among other things, is why you should hire an expert to review your offer of just compensation so you can get the most money for your property taken by eminent domain.
Washington State Eminent Domain Process Part III The Offer and Negotiation
Once the appraisal is complete, the condemning authority will put together an offer of just compensation for your property and present it to you. At this time you should do one thing - ask for a copy of the appraisal. They don't have to give it to you, and sometimes they won't. But if they do it provides valuable information for you to get more money for your land. This is important because the key to getting the most money for your property taken by eminent domain is breaking down the government's appraisal. This means it is not helpful to get a separate appraisal of your condemned property. If you get an appraisal, the condemning authority will do exactly what I would do if hired by you - cut up the appraisal.When I worked for a government agency as their eminent domain attorney I ran into this problem all the time. I knew the weaknesses of our appraisals, and if landowner's hired someone experienced in eminent domain, they would soon see the weaknesses of our appraisal.
Once the offer is given to you, the negotiation process begins. This, in some cases, can include relocation benefits (generally if your house or business is being taken through eminent domain), but it generally includes a discussion regarding the value of the property and the damage accruing to the remainder. And make no mistake, there is a lot of room to negotiate the sale of your property to the government.
Friday
Washington State Eminent Domain Example | Federal Way Stormwater Retention Facility
I was glancing through the paper a week or so ago and saw a story that reminded me of why I love helping Washington State property owners negotiate eminent domain takings. Reported in the Federal Way Mirror, it appears as though the officials of Federal Way, Washington want to build a regional stormwater facility, presumably to capture the runoff from storm water that has been created as a result of all of the development in the area.
Because the city knows it needs this facility and will be building it in the relatively near future, Federal Way has determined it is necessary to use its power of eminent domain to get the property needed for the facility. This means that at least five property owners are facing the loss of some of their property in exchange for just compensation.
As you can see from the article, however, things have not been going as smoothly as one might have hoped. Although some of the property owners don't feel Federal Way needs all of the land it is asking for (an issue completely separate from just compensation and best handled by a Washington eminent domain attorney) a major problem is the amount of just compensation being offered for the property.
The story notes that when Federal Way initially contacted one of the landowners and presented the offer of just compensation the offer was for a measly $2,500. This was supposed to be compensation for the property Federal Way was taking as well as any damages the remaining property as a result of the take. After the property owner balked at the offer it was magically raised to $16,400! And that was without any help.
With a little more work, however, they may have been able to get much more. Generally, it is not enough for the property owner in this instance to simply tell Federal Way that his remaining property is going to be worth less after they take what they need. He needs to show them. That often includes finding comparable sales, reading and evaluating zoning ordinances, and combining all of the information gathered into a cohesive, persuasive presentation to the city.
Because the city knows it needs this facility and will be building it in the relatively near future, Federal Way has determined it is necessary to use its power of eminent domain to get the property needed for the facility. This means that at least five property owners are facing the loss of some of their property in exchange for just compensation.
As you can see from the article, however, things have not been going as smoothly as one might have hoped. Although some of the property owners don't feel Federal Way needs all of the land it is asking for (an issue completely separate from just compensation and best handled by a Washington eminent domain attorney) a major problem is the amount of just compensation being offered for the property.
The story notes that when Federal Way initially contacted one of the landowners and presented the offer of just compensation the offer was for a measly $2,500. This was supposed to be compensation for the property Federal Way was taking as well as any damages the remaining property as a result of the take. After the property owner balked at the offer it was magically raised to $16,400! And that was without any help.
With a little more work, however, they may have been able to get much more. Generally, it is not enough for the property owner in this instance to simply tell Federal Way that his remaining property is going to be worth less after they take what they need. He needs to show them. That often includes finding comparable sales, reading and evaluating zoning ordinances, and combining all of the information gathered into a cohesive, persuasive presentation to the city.
Wednesday
WA State Eminent Domain | Just Compensation | Offer and Appraisal
The Condemning Authority's Appraisal is Not Always Correct
One of the first things I learned was that although the appraiser's for the condemning authority try hard, they often missed critical elements that greatly undervalued property owners' land. This resulted in very low offers of just compensation and a lot of wiggle room for landowners that had experienced help. Washington eminent domain land valuation is very different from valuing regular property for several reasons: first, there are some rules that are specific only to eminent domain takes; second, sometimes there is property left over after the government has taken what they need (sometimes in multiple parts), and the way an appraiser would normally value this is not the same as they are required to do under eminent domain rules; and finally, the appraisers are often asked to complete their valuations very quickly, forcing them to make decisions they just aren't prepared to make.Because government appraisers make mistakes, it is important to hire someone who can help you evaluate the condemning authorities offer and appraisal to make sure they've done a good job. And the great thing is, this initial review doesn't cost you a dime.
The Government is Often Willing to Negotiate the Price of Your Condemned Property up Significantly - If a Good Argument is Presented
Contrary to popular belief, the government actually wants to pay you what your property is worth - just compensation is a term they actually try to meet (for the most part). The government also knows that sometimes they make mistakes. They also know that generally it is much safer and much less expensive to ask you what you are asking than risk going through an eminent domain trial. This benefits landowners greatly - again, if you have good people working on your behalf.Let me give you an example. Let's say the Sound Transit Authority is condemning your property for the light rail project that just passed. They need your property because it is in the footprint of the actual tracks of the light rail so there is no question it is for public purposes. Sound Transit has notified you they want to take your property, have had an appraisal done, and have presented you with an offer. The first thing you will notice is that Sound Transit has people working on their behalf to acquire your property - acquisition agents. This is all the more reason to have someone on your side. Now back to the example. Because they only took a strip of your property (referred to as a partial take) they have done a before and after analysis of your Seattle property.
A good Washington state eminent domain adviser will immediately look to the damages that have been assigned to the remainder of your property to make sure they were adequately accounted for. And assuming there were some problems with this would discuss the impacts to your property and how that might affect it if you would try to sell it in the future. Next you would bring up any discrepancy you thought you found to the acquisition agent, setting out in concrete terms why you believe the offer is low. If the justification is good, they will often come up and meet your request.
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