How to Determine the Highest and Best Use of Your Property
To determine the fair market value of a property subject to eminent domain, an appraiser must evaluate the vacant land or improved property based on the property's highest and best use.
According to “Black's Law Dictionary,” the highest and best use of a property is the use that will generate the most profit. Other factors must also be considered. The use being considered must be:
- Physically possible
- Legally permissible
- Financially feasible
- Maximally productive
Rezoning Questions
If farmland is the subject of a condemnation action, the highest and best use of the land may not be agricultural. If there is a reasonable possibility that the land could be rezoned, the appraiser should evaluate the property based on how it would be zoned after the proposed project is complete or by the zoning of adjacent properties.
For example, if housing developments are encroaching on the farm, the property should be evaluated as if it were zoned for residential, not agricultural use. If the bare land is located adjacent to an office complex or shopping mall, it should be appraised as if it were zoned for commercial use.
Are You Getting Fair Compensation for Your Property?
Every state has slightly different regulations about how to determine the highest and best use of a property. Located in Wisconsin, the attorneys of Fair Compensation have helped clients throughout the upper Midwest and nationwide determine the highest and best use of their property and receive just compensation.
It must be remembered that market price, as such, is not controlling. The Fifth Amendment's exact limitation on power of government is not market price — it is just compensation.
If your land is the subject of a condemnation action, one of our experienced lawyers will provide a free eminent domain audit. For more information, or to schedule a consultation, please contact us today by e-mail or call toll free 866-550-7311.
From offices in Wisconsin, we represent clients throughout the Midwest and nationwide.
