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If the Georgia Department of Transportation is the agency condemning your land, this offer will usually be sent as a “Summary Statement Basis for Just and Adequate Compensation.” It is generally part of a package of documents and forms that nearly every owner of real property receives, though the packet varies based on the type of property, type of ownership, and specifics of the taking.
In simpler terms, “just compensation” (their estimate for how much you’re owed) breaks down into several categories:
Value of right of way to be acquired
The “right of way” is the area of land that the condemning agency is buying to build a road or other project on. This doesn’t necessarily mean a road or building will cover the land they purchase. Often, the condemning agency may purchase extra land to act as a barrier on the sides of the road, or they may plan on building more at some point in the future.
It’s important to note that you’re giving them complete ownership of the land, and the value assigned here should equal 100% of the value of the land taken. Property owners and the government do not always agree on the value of the land, and if you believe the amount in this category is low, consult with our experienced eminent domain attorneys before agreeing to the offer.
Value of permanent easements to be acquired
A “permanent easement” means the condemning agency is not purchasing your land but is buying the rights to alter it in some way. There are a variety of permanent easements: slope, drainage, and utility easements are the most common.
A permanent slope easement is the right to alter and maintain the elevation of a property owner’s land in the easement area. A permanent drainage easement is the right to alter and maintain the property owner’s land to facilitate drainage of the project, usually by digging ditches or installing pipes. A permanent utility easement is the right to construct and maintain certain utilities (generally power, sewer, or water lines) on a property owner’s land.
For all of these, a property owner still owns the underlying land but is no longer allowed to use the land in any way that would interfere with the easements. Further, if a property owner builds a fence, plants landscaping, etc. in an easement area after the taking, the condemning agency wouldn’t have to pay the owner for these improvements.
Property owners and the condemning agency often disagree on the value of these easements. Plus, easements may affect your property’s use and resale value and should not be granted lightly.
Value of temporary easement (rental of land) to be acquired
A “temporary easement” means the condemning agency is leasing a portion of your land for the length of time needed to complete the project. Generally, this is a temporary construction easement. The property owner will regain full ownership of this land at the end of the project.
An owner shouldn’t accept a low value for this easement just because it is temporary. A temporary easement that comes within a few feet of a home can be just as disruptive to an owner as a permanent easement hundreds of feet from their house. And, as projects drag on due to delays, the easement may not feel temporary at all.
Value of improvements to be acquired
Improvements are upgrades to the land. Improvements can include wells, septic systems, landscaping, trees, fences, walkways, driveways, sheds, structures, and many other items. The condemning agency will often depreciate the value of the improvements.
They will likely tell you the improvements are worth less now than when you bought them and offer to pay you less because of it. A property owner should carefully consider which improvements are being taken and their values to ensure they are getting just compensation for them.
Severance damages
Severance damages sound straightforward but can be difficult to determine. Essentially, severance damage is any difference in the price of your property immediately before the taking and immediately after the taking, discounting for the value of the right of way, easements, and improvements that are being purchased separately.
In other words, payment for the property being taken is “direct damages.” You should also be paid for the reduction in value or use of the land that remains after the severance, hence severance damages.
This value is often an area of contention between property owners and the condemning agency as each side may disagree as to both before and after values. Our network of land experts can help you determine these values accurately.
Total offer
The total offer is the combined value of the right of way, easements, improvements, and damages. Despite the title, the total offer may not always be the condemning agency’s total first offer. In cases where the condemning agency is taking an owner’s land but leaving an unusable remnant, the agency may be willing to purchase the remaining land from the homeowner. If this is the case, then in Section “C” of the form, there will be a second total offer value.
This second total offer amount can confuse property owners; who would expect two separate value amounts both called a total offer? The first total offer is the condemning agency’s offer of just compensation for what it requires for the project. Any second total offer, which includes a value for the remnant, is the agency’s offer of just compensation both for what is required for the project and for the extra land they are willing to buy to make the process slightly easier on a property owner. You are not required to sell the remnant to the condemning agency.
Despite any “total offers,” the government may be willing to give you more for your property if you can prove its value. That’s where we come in.
Proving the true value of your property
Before you settle, think carefully about the offer. Your land is your investment, and it may be worth more – maybe a lot more – than the government is offering.
Since our firm began, we’ve increased our clients’ average initial offer by nearly 3x more.1
To see what your property may really be worth, call us today at 1-888-391-1339 or contact us online. The evaluation is free and could make a significant difference in how much you demand for your land.
