When a property owner is having their property taken through eminent domain, it is important for them to understand what types of damages they should receive. When property is taken by the government for public use through eminent domain, the government must pay just compensation for the taking which is why it is essential for property owners to know what just compensation means.
The purpose of just compensation is to place the property owner in the same position, or as close to it as possible, that they would have been in without the taking of their property and to make them whole again. It is necessary for property owners going through the takings process to know how just compensation is calculated through the valuation of their property. The property valuation process for eminent domain damages can be a challenging process that the property owner may have to fight for which is why they need to be familiar with it.
Just compensation is based on the fair market value of the property being taken but how that is determined is important to understand. Factors that may be used to determine what is fair market value for the property include the size of property; accessibility of the property; how the property is zoned; unique characteristics of the property; the level of development of the property; and the current or potential use of the property. There are also different approaches to calculating value property owners should be familiar with including market approach, income approach and the cost approach.
The rights of property owners are important and should be protected. As a result, it is essential for property owners facing the taking of their property by the government to understand how the value of their property will be calculated and fight for the just compensation they deserve for their property.