Property owners affected by eminent domain want to know what the government has to pay. There’s a short answer and a long answer. The short answer is, “just and adequate compensation.” That’s the goal and the law.

Getting there is the long answer. The eminent domain process can be lengthy, and every property’s nuances and unique nature can affect compensation. In this article, I’ll cover both the process (the journey) of eminent domain and the compensation (the destination) property owners can seek.

Remember that, within legal bounds, the government is just like any other buyer – they want the property for the lowest possible cost. Contact an experienced eminent domain attorney to help you identify possible errors in the government’s appraisal, apprise you of your rights as a property owner, and help you spot any overlooked value in your property for eminent domain.

For a free case evaluation with no obligation, call us at 1-888-391-1339 today.

What must the government pay for property taken in eminent domain?

Georgia law requires that the owner of the property that is taken by eminent domain be “justly and adequately compensated” – but it does not strictly define what qualifies as “just.” It isn’t an exact science.

Here are the steps a condemnor in Georgia should take when providing just compensation for your taken property:

  1. Verify Public Purpose and Necessity: Ensure the project serves a public purpose as required by law and that taking the property is necessary for the project’s completion.
  2. Conduct a Proper Appraisal: Obtain a detailed appraisal of the property to determine its fair market value. The appraisal must be conducted by a qualified appraiser and should consider all relevant aspects of the property.
  3. Good Faith Negotiations: As highlighted in City of Marietta v. Summerour, the condemnor must engage in good faith negotiations before initiating condemnation proceedings. This includes making a bona fide offer based on the appraisal and providing the property owner with a reasonable opportunity to consider and respond to the offer.
  4. Notice of Condemnation: Provide the property owner with a formal written notice of the intent to condemn, detailing the public purpose behind the acquisition and the legal authority under which the condemnation is proceeding.
  5. Provide Appraisal Report: Supply the property owner with a copy of the appraisal report upon which the offer is based. This must be done sufficiently in advance to allow the owner to review the valuation and prepare a response.
  6. Opportunity for Counteroffer: Allow the property owner to make a counteroffer and consider it genuinely, providing a foundation for negotiation rather than a unilateral imposition.
  7. Filing of Petition: If negotiations fail, file a petition for condemnation in the appropriate court. The petition should clearly state the facts of the public necessity and the attempted negotiations.
  8. Court Hearing and Right to Challenge: Ensure that the process allows the property owner to challenge the taking, the public necessity, and the compensation offered in a court hearing.
  9. Compensation and Payment: Secure funds for prompt payment of compensation awarded by the court, including any additional damages or costs awarded to the property owner.
  10. Compliance with Relocation Assistance Laws: If applicable, comply with state and federal relocation assistance laws, providing support and compensation for moving and related expenses.
  11. Record Keeping and Transparency: Maintain comprehensive records of all steps taken during the condemnation process to ensure transparency and accountability. This includes documentation of negotiations, appraisals, court filings, and communications with the property owner.
  12. Appeals Process: Be prepared for potential appeals and ensure that all legal rights of the property owner are observed throughout the appellate process.

The government can offer any amount as long as they have some basis for the offer (like their appraisal), but that doesn’t mean the offer is accurate. The government is not obligated to tell you how to fight for more compensation nor warn you about things you may do that will damage your case.

But our experienced eminent domain lawyers have a track record of success and can help you fight for maximum compensation.1

How does GDOT determine what a fair offer is?

A land appraiser surveying a plot with a theodolite.

When the condemning authority (typically GDOT) decides to purchase land for a project, they have it appraised, and that becomes the basis of the property’s “fair value” and their offer. In an ideal world, this appraisal would be error-free and consider all the property’s reasonable uses. In reality, errors in this calculation are not unheard of, and potential uses can often be overlooked.

How does GDOT arrive at a fair value?

An appraiser establishes value by determining the highest and best use of a property. This is generally the use that would result in the highest sales price.

The condemning authority’s appraiser has to consider what a reasonable buyer would think the property is capable of, and what that reasonable buyer would likely pay for it at the time of sale. If an owner can show that their property is suitable for a higher use and that use is reasonable, the condemning authority should compensate the owner accordingly.

Example of “highest and best use”

The value of land increases based on its usage.

Let’s say a condemned farmland property was appraised at $300,000, but experts hired by an eminent domain attorney proved the highest and best use for the property would be for single-family development, thereby raising the value to $800,000.

In the end, the farmer would receive the $300,000 original offer, plus the additional $500,000 (minus the 1/3 attorney fee). The result in this example is that the farmer would more than double the amount they receive.

$300,000 original offer + $333,333 additional negotiated value after attorney fee =
more than double the compensation!

It’s usually prudent to have an attorney who is experienced in eminent domain law – 5 of our attorneys used to work for a state DOT – review your case to help determine what a fair offer ought to be.

What options do property owners have to fight for more?

Under Georgia law, property owners can fight for compensation they believe they deserve for a variety of reasons, including:

  1. Inadequate Offer: The most common claim is that the compensation offered is not commensurate with the fair market value of the property. Landowners can challenge the compensation amount based on valuations by their attorney’s independent appraisers.
  2. Pre-condemnation Damages: Claims that the state’s activities related to the planned project (such as public announcements, planning actions, or preliminary construction) have diminished the value of the property before formal condemnation.
  3. Inverse Condemnation: If the government informally takes or uses property without formally condemning it through eminent domain proceedings, the owner can file for inverse condemnation, seeking just compensation.
  4. Relocation Benefits and Assistance: Under state and federal law, claims for adequate relocation assistance and benefits for both residential and business moves can be made if the state’s taking necessitates moving.
  5. Loss of Access: If the property’s access to public roads is negatively impacted by the state’s project, the owner can claim compensation for the loss of access that might reduce the property’s value.
  6. Damage to Remaining Property: If only part of a property is taken, the owner can claim compensation for any decrease in value of the remaining property, often referred to as “severance damages.”
  7. Litigation Costs: Under certain circumstances, property owners might be able to recover reasonable litigation expenses, including attorney’s fees and appraisal costs, particularly if the final judgment greatly exceeds the state’s initial offer.
  8. Bad Faith or Abuse of Process: While challenging to prove, claims that the condemnation process was conducted in bad faith or with procedural abuses can be made.
  9. Temporary Takings: Compensation can also be claimed for temporary takings, where the state uses the property for a public purpose for a limited time but does not seek to permanently acquire it.

It’s important to ensure that landowners receive just compensation and fair treatment during the eminent domain process. Each case is unique, so it’s advisable for landowners to consult with an eminent domain attorney to evaluate and pursue their case effectively.

Don’t delay and don’t take chances – Get your free case evaluation now

Five of our eminent domain attorneys previously worked representing a state DOT in condemnation matters. We use that inside knowledge to pursue maximum compensation on our clients’ behalf, and our results speak for themselves:

Since our firm began, we’ve helped our clients get on average nearly 3x the DOT’s initial offer.1

We’re so confident that we can help that we do not charge a penny unless we get you more than the DOT’s offer.2

You pay nothing at all if we don't get you more than your original offer.

For help, answers, and a free case evaluation, give us a call at 1-888-391-1339 now or contact us online.

About David Needham

David Needham handles eminent domain cases in Georgia as a lead attorney at the GA Eminent Domain Law Firm. He has an abundance of experience, having successfully started eminent domain and REO (Real Estate Owned) practices.1 David is licensed to practice law in North Carolina, Georgia, Florida, and Virginia, has represented clients in real estate closings and eminent domain cases for more than 15 years, and has spoken regularly at eminent domain town hall meetings.