Appraise Nevada Eminent Domain / Takings Page

Its tough times for Nevada Builders. Now that we are in the middle of the biggest slow down in the residential real estate market that has hit town in 20 years, it is going to take some time to make the necessary adjustments. As soon as everyone realizes that we are dealing with a service based economy, and that we don't have all of those Engineering jobs and Professionals that you find in some Cities, builders will turn the corner and start building homes that they can actually sell. That means its time to get away from the before downturn $ 500,000 home prices and getting back to something possible in the $ 200,000 to $ 250,000 range.

Is that going to be easy? Not with land prices in the sky, construction costs increasing by 10% per year and mortgage companies evaporating like water on the sidewalk in the 115 degree summer.

Can it be done? It doesn't appear to me that there are going to be a lot of choices if you are going to remain in the home building business here long term. By 2008 we may start to see some relief from what is a now a free fall. But I don't see a healthy market returning until prices come down to the point where there is demand for the product being produced.

3/7/2008 UPDATE:

This months Standard & Poor's Price Index indicated that Nevada housing prices have dropped 15.3% in the last year. With price decreases of this magnitude, the market is making its correction quickly. While it is still difficult to find homes below $ 250,000 in Henderson, there are many homes and condos now available in Clark County and Las Vegas the $ 150,000 to $ 250,000 range.

GJR

USEFUL DEFINITIONS:

1. Highest and Best Use: It's not what you want to do with your property. For appraisers it is the “reasonably probable” and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. Sometimes called the “optimum use.”

Zoning, Probability of Rezoning, Land
Use Plans and appraiser judgment based on analysis all can enter into a final highest and best use determination.

The highest and best use may or may not be the currently improved use.

2. Fair Market Value: For condemnation purposes appraisers are bound by definition provided in Nevada Revised Statute (N.R.S. 37.009). There are several other definitions of market value including the "federal" definition. Appraisers must provide the definition that they used and their source in an appraisal report.

3. Just Compensation: is the "fair market value" of the property and any consequential damages.

4. Partial Interest Taking: Typically only a portion of a property is taken from a property owner for roadway widening, power lines, drainage channels or other public uses. The parcel that is left is described as the "remainder."

5. Before and After Appraisal: Appraisers typical need to know the value of a property both before the taking and after the taking.