Anyone ever had a house taken by eminent domain?

fastfredracing · 10-26-2009, 01:56 PM

I got a letter today from the city that is a" notice to acquire property". They have to tear down 3 houses on the street to gain access to a very large retaining wall, holding up the upper street.
I called the number on the letter, and the man on the phone did verify that they will be doing appraisals, making assessments , and buying out my house within the next year.
This is not my primary residence, it was my first home, and I have used it as a rental property for the last 13 years or so
While I am relieved, I am also scared that this could turn into a nightmare. I would assume they would at least have to offer me the assessed value??, as that is what I have been paying taxes on for all of these years. It was just re -assessed 1.5 years ago. Should I consult an attorney at this point, or just wait and see what the offer is. ?
Anyone here familiar with the eminent domain process??

icemann427 · 10-26-2009, 02:14 PM

By no means accept the assessed value. That is a reduced value used in calculating RE taxes.

The value they should be paying you is the "Fair Market Value" of your house. To protect yourself, you may want to go get yourself a couple of appraisals to verify the amount offered by the municipality after they make their offer.

McLovin · 02:23 PM

I was involved in one 15 or so years ago.

If they are true to form, they will lowball you. Depending on the value of the house, litigation may or may not make sense. If you can work out a number, great, but if not, you always have the option to have the court decide.

It's not cheap to do that, though (although I don't recall the rules for recovery of your attorneys' fees, I believe they have to make their best offer, and if you litigate and get more than that, they have to pay your attorneys' fees. The flip side is you might have to pay their if you lose. Before litigating, you need to find the answers to those questions, as that can be determinative, i.e., can make it a huge gamble that may not be worth it).

Depending on where their number comes in and what you think the property is worth, it may be worth it for you to hire a good, experienced eminent domain attorney to represent you in your negotiations with the city. IMO he/she has a better chance of getting a higher number in negotiations.