As a Seattle eminent domain attorney and Washington condemnation attorney I deal with a lot of people who are having their property taken by eminent domain. It is never an easy process, you have to fight tooth and nail for every penny, and it is always rewarding to see the light at the end of the tunnel, to see the landowner get the money they deserve, and to resolve a dispute leaving my clients happy.
But in doing all of this it is important to remember that the sale of property is never an exact science, that in many cases neither side is going to get everything they want or think they need. Just like with the purchase of an entire house or building or car or anything else, there is no precise price, and in many cases the offers of the parties set the high and low points, with the final agreed to price somewhere in the middle. It is important for landowners having their Washington property taken through eminent domain to understand they are not going to get what is asked for in the initial counteroffer (condemning authorities for the most part recognize they are almost always going to have to come up in price for just compensation). What they are doing is setting a ceiling, an absolute height in just compensation, that might be reached in the perfect scenario.
Many times we, as eminent domain attorneys, need to remember to temper client expectations, to remind them that although our theories and arguments sound great in discussion, when the rubber hits the road some will either be inadmissible or will be seen as an attempt to get money that is not reasonable. In the end, it is likely the landowners will have to come down from their initial counteroffer and the government will have to come up, until the parties reach a place they are both comfortable with. So, remember to take that into account when negotiating with the condemning authority and when strategizing with your client. It can make a big difference in everyone walking away feeling satisfied.
If your property is being taken by the government in Washington State by eminent domain, whether it be Seattle, Renton, Spokane, Kennewick, Olympia, Tacoma, Federal Way, Kent, Everett, Woodinville, Redmond, Kirkland, Yakima, Bellevue, Auburn, Puyallup, Vancouver, Mukilteo, Edmonds, West Seattle, or Pullman, you need someone working on your side.
Showing posts with label Washington State Eminent Domain Just Compensation Process. Show all posts
Showing posts with label Washington State Eminent Domain Just Compensation Process. Show all posts
Tuesday
What to do if Your Property is Being Taken by Eminent Domain
If you have found your way here, you have probably received some correspondence from your city, county, or state government, the Washington Department of Transportation, or some other governmental entity that your property is or will need to be acquired by eminent domain. You are probably pretty scared right now. That is okay. It can be a bit of scary process, particularly since it has probably never happened to you before. But while you are feeling scared it is also time to get proactive to either: (1) stop the eminent domain process all together; or (2) get the most money (I say the correct money) for your property. Below I'll give you some steps to follow so that you can make sure you are accorded your full Constitutional rights.
As I mentioned above, there are two separate problems to consider when facing Washington state eminent domain. First, is whether your process can be taken by eminent domain. The second is what the value of your property is worth - its fair market value. To need to determine the fair market value of your property so that just compensation can be paid to you, the government first needs to show that the property they are taking is for a public purpose or use.
Although you may have recently heard that the United States Supreme Court has weakened the requirements for finding a public purpose (the Kelo case), once that case was handed down states rushed to redefine public purpose under the state law. As such, Washington's eminent domain law's are much stricter, overall, than those of the federal government. This means if you feel like your land is not being taken for a true public purpose (often government's will try to take land under the guise of "economic development," wherein once they have your property they will sell it or lease it to a private developer who will construct condos or a mall on it) you may actually have a chance of having the court rule that the taking is not for a public purpose.
If you feel like your land is not being taken for a public purpose you should find a qualified eminent domain lawyer to help you.
Once you've determined that the taking is for a public purpose (or are satisfied that it is), then the real fun begins. If you are not familiar with the eminent domain process, now would be a great time to learn about it. Basically the government appraises your property, presents you with an offer of just compensation (and relocation benefits if they are taking your house or your business) and you can either accept their offer or negotiate for more money.
This is where a qualified professional is needed, and at least for the first phase of the process, at no out of pocket cost to you at all. When you talk to the acquisition agents (the government employees hired to negotiate the sale of your property) they will suggest that you hire your own appraiser to valuate your property. DO NOT HIRE AN APPRAISER TO VALUATE YOUR PROPERTY AT THIS STAGE OF THE PROCEEDINGS. It is not to your benefit but to their benefit. At this point you have all of the leverage because you have the ability (with help) to examine their appraisal and determine its weaknesses. The money in eminent domain for you as a property owner is NOT made by getting your own appraiser but by showing WSDOT or Sound Transit or the City of Seattle how their appraiser messed up and you deserve more money.
Another thing about hiring an appraiser is that they are expensive, and unless they are experienced in eminent domain, they will not know how to valuate your property correctly. And once you do have an appraiser, the condemning agency will use its knowledge and experience to pick apart your appraisal, trying to bring down the value of your property. That is exactly what you do not want to do.
So, what is there to do? There are a number of eminent domain professionals out there who can help you evaluate the condemning authorities offer of just compensation for your property. And the best part is, this initial evaluation is paid for by the condemning authority! State statute requires any entity taking your property by eminent domain to pay up to $750 dollars for you to get their offer evaluated. This is great because it generally costs about that much for an offer to be evaluated.
What goes into an evaluation of an offer of just compensation of eminent domain? A lot actually. It starts with a thorough review of the condemning authorities appraisal (if you can get it - great general rule here - if your property is being taken by eminent domain always ask for a copy of their appraisal), including how they have characterized your property (commercial, residential, agricultural), what they relied on to make that determination, how much property they are taking, what your property was like before the taking, what it will be like after the taking, the appraisal method utilized (comparable sales, cost, or income capitalization) and any other factors they took into account. Generally this will give an overview of the condemning authorities determination of the value of your property. After the appraisal is reviewed, a discussion with you, the landowner, is in order. During that discussion we'll talk about all of the things in the appraisal, with a focus on the use of the property, the best use of the property, and any sales that have occurred in the area of property you think is similar to your property. A visit to the property is also usually very helpful. After that, it is important to find sales and information that are favorable to our view of how the property should be valued.
After all of the information is gathered and analyzed (usually it takes about two weeks), the next step is to respond to the condemning authority in writing, discussing any shortcomings in their appraisal and additional information we have. At that point, the condemners usually take a couple of weeks to evaluate and respond. Traditionally at that point a meeting occurs to try to settle on a price for the property. If an agreement cannot be reached after negotiation, then a trial is held to determine the just compensation you get (this is the point where you get an appraiser).
So, as you can tell, it is not necessarily a fun experience, but it can be empowering in the sense that you can have a say in what you are paid for your property. And you deserve that power. If your property is being taken by eminent domain in the state of Washington, don't wait expecting it to go away. Call someone that can help today, and begin preparing your side of the property valuation story.
As I mentioned above, there are two separate problems to consider when facing Washington state eminent domain. First, is whether your process can be taken by eminent domain. The second is what the value of your property is worth - its fair market value. To need to determine the fair market value of your property so that just compensation can be paid to you, the government first needs to show that the property they are taking is for a public purpose or use.
Although you may have recently heard that the United States Supreme Court has weakened the requirements for finding a public purpose (the Kelo case), once that case was handed down states rushed to redefine public purpose under the state law. As such, Washington's eminent domain law's are much stricter, overall, than those of the federal government. This means if you feel like your land is not being taken for a true public purpose (often government's will try to take land under the guise of "economic development," wherein once they have your property they will sell it or lease it to a private developer who will construct condos or a mall on it) you may actually have a chance of having the court rule that the taking is not for a public purpose.
If you feel like your land is not being taken for a public purpose you should find a qualified eminent domain lawyer to help you.
Once you've determined that the taking is for a public purpose (or are satisfied that it is), then the real fun begins. If you are not familiar with the eminent domain process, now would be a great time to learn about it. Basically the government appraises your property, presents you with an offer of just compensation (and relocation benefits if they are taking your house or your business) and you can either accept their offer or negotiate for more money.
This is where a qualified professional is needed, and at least for the first phase of the process, at no out of pocket cost to you at all. When you talk to the acquisition agents (the government employees hired to negotiate the sale of your property) they will suggest that you hire your own appraiser to valuate your property. DO NOT HIRE AN APPRAISER TO VALUATE YOUR PROPERTY AT THIS STAGE OF THE PROCEEDINGS. It is not to your benefit but to their benefit. At this point you have all of the leverage because you have the ability (with help) to examine their appraisal and determine its weaknesses. The money in eminent domain for you as a property owner is NOT made by getting your own appraiser but by showing WSDOT or Sound Transit or the City of Seattle how their appraiser messed up and you deserve more money.
Another thing about hiring an appraiser is that they are expensive, and unless they are experienced in eminent domain, they will not know how to valuate your property correctly. And once you do have an appraiser, the condemning agency will use its knowledge and experience to pick apart your appraisal, trying to bring down the value of your property. That is exactly what you do not want to do.
So, what is there to do? There are a number of eminent domain professionals out there who can help you evaluate the condemning authorities offer of just compensation for your property. And the best part is, this initial evaluation is paid for by the condemning authority! State statute requires any entity taking your property by eminent domain to pay up to $750 dollars for you to get their offer evaluated. This is great because it generally costs about that much for an offer to be evaluated.
What goes into an evaluation of an offer of just compensation of eminent domain? A lot actually. It starts with a thorough review of the condemning authorities appraisal (if you can get it - great general rule here - if your property is being taken by eminent domain always ask for a copy of their appraisal), including how they have characterized your property (commercial, residential, agricultural), what they relied on to make that determination, how much property they are taking, what your property was like before the taking, what it will be like after the taking, the appraisal method utilized (comparable sales, cost, or income capitalization) and any other factors they took into account. Generally this will give an overview of the condemning authorities determination of the value of your property. After the appraisal is reviewed, a discussion with you, the landowner, is in order. During that discussion we'll talk about all of the things in the appraisal, with a focus on the use of the property, the best use of the property, and any sales that have occurred in the area of property you think is similar to your property. A visit to the property is also usually very helpful. After that, it is important to find sales and information that are favorable to our view of how the property should be valued.
After all of the information is gathered and analyzed (usually it takes about two weeks), the next step is to respond to the condemning authority in writing, discussing any shortcomings in their appraisal and additional information we have. At that point, the condemners usually take a couple of weeks to evaluate and respond. Traditionally at that point a meeting occurs to try to settle on a price for the property. If an agreement cannot be reached after negotiation, then a trial is held to determine the just compensation you get (this is the point where you get an appraiser).
So, as you can tell, it is not necessarily a fun experience, but it can be empowering in the sense that you can have a say in what you are paid for your property. And you deserve that power. If your property is being taken by eminent domain in the state of Washington, don't wait expecting it to go away. Call someone that can help today, and begin preparing your side of the property valuation story.
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.
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