A second opinion resulted in a significant increase in just compensation for a new right-of-way easement.
During the fall, Universal Appraisal and Review (UAR) was requested to prepare an appraisal on a right-of-way taking along a highly developed highway in a Twin City Suburb of Minneapolis. The easement area taken was considerably smaller than the overall site. But the site was improved with a multi-story high density condominium property.
The condemning authority considered just compensation to be roughly $24,000 for the right-of-way acquired, temporary easement and site improvements taken. The property’s board of directors wanted to make sure the compensation was adequate.
After reviewing the condemning authority’s appraisal, UAR researched and analyzed similar high density properties in the market and prepared an appraisal report. Our analysis indicated that the actual compensation should have been significantly higher than the offer received. Why?
A review of the other appraisal revealed that although several of the comparable sales used in the appraisal were the same as used by UAR, the appraisal had failed to update the analysis section of the report. As a result, different comparable sales, produced in a different report, were used to value the subject property. This resulted in a significantly lower valuation for the underlying easement being acquired.
After UAR submitted the appraisal to our client, the report was forwarded to the condemning authority. Four months later the condemning authority revised their offer to $100,000+, based upon UAR’s appraisal report.
These differences are not uncommon. A trained appraisal professional can help determine if the offer for fair compensation made by the condemning authority is reasonable and supportable. A carefully researched and documented appraisal can also result in higher compensation and damages which may have been missed without a second opinion.