Evidence of Low-Ball Eminent Domain Offers by NCDOT
“The newspaper concluded, “A review of the settled claims showed the NCDOT had agreed to pay many of the property owners 30 to 40 percent more than the appraised value of their land.” Does this suggest that landowners are somehow taking advantage of the NCDOT? That is doubtful. If anything, this analysis suggests how artificially low the State’s appraisals are. They know that some landowners will simply accept the first offer they receive, especially when an allegedly “independent” property appraiser shows up with a report that seems pretty convincing, whether or not it reflects the full compensation the landowner deserves.
Entities that take property through the condemnation process using the power of eminent domain know that they can start with very low offers because there is no doubt as to whether the State can take the land for public uses. In fact, a landowner cannot delay construction or a project just by disputing the value of the land, which the article and NCDOT officials all acknowledge. There is no way to make the State “overpay” for a property – they can simply file the paperwork to start a condemnation action and take it! A landowner’s only recourse is in the courts, where one must prove to a judge or impartial jury what the land is truly worth. The State has all the time, legal expertise, and resources to go to court, and they do so hundreds of times per year. When it’s just one landowner trying to protect their constitutional rights against huge state agency with a nearly $4 billion dollar annual budget, who do you think has the leverage? The truth is that a landowner’s only chance to get fair compensation for the land that is taken is to hire lawyers and property appraisers with the right knowledge and experience to know the real value and level the playing field.”
Shiloh Daum, Sever Storey, LLP Blog 4 January 2013.