When the government decides that it wants to use your Texas property, it will invoke eminent domain to acquire it from you in exchange for what the Fifth Amendment of the Constitution calls “just compensation.” However, you might not agree with what the government says your just compensation should be. By finding out what the fair market value of your home is, you can make the case for a fairer price for your property.

As FindLaw explains, the fair market value of your home is a key factor in determining the valuation of your home. Fair market value is what people would reasonably consider a piece of property to be worth. For the purposes of eminent domain, fair market value would produce the amount that the government would be willing to compensate the property owner for.

Fair market value is likely to be a strong point of contention if you dispute the government’s assessment of the value of your home. Homeowners do not want to be cheated out of a good price for their property. If necessary, you and your eminent domain attorney will present an expert witness that will use commonly accepted factors that determine fair market value to come up with an acceptable price for your property. These factors may include:

  • How big the property is
  • The distinctive characteristics of the property
  • How much the property is developed
  • How accessible the property is
  • How the property is currently used or will be used

Nerdwallet explains that market value is also determined by comparing your home to other properties. Property valuation experts will look at the depreciation, sales, vacancies and other variables that exist for houses or properties that are similar to yours that exist in the same market. With information on your local market, your home and similar properties pooled together, this information should produce an accurate market value for your property.