Compensation
What the law says you are owed
The constitutional standard is that an owner should be no worse off financially than if the property had not been taken. In practice that means fair market value, and the practical meaning of that phrase is narrower than most owners expect.
The principle
Indemnity, which explains both halves
Compensation is intended to put the owner in the same financial position as before the taking. That single idea explains what is paid and what is refused.
Fair market value is paid because selling at market value would have left you in that position. Value peculiar to you is refused because no buyer would have paid it, so paying it would leave you better off than a sale would have. The logic is consistent, and it produces outcomes that feel wrong to people who are being moved out of a home they did not want to leave.
The compensation covers the property, not the disruption. Moving costs, the trouble of finding somewhere else and the loss of a routine are real and mostly fall outside the valuation. Some of them are addressed by the separate relocation programme.
The boundary
Paid and not paid
| Item | Treatment |
|---|---|
| Market value of land and buildings taken | Paid |
| Loss in value to the remainder | Paid, as severance damages |
| Fixtures attached to the property | Paid |
| Cost of curing a problem the taking created | Paid where the cure genuinely works |
| Moving and relocation expenses | Separate statutory programme, not part of the valuation |
| Business goodwill | Excluded in most states; compensated by statute in a few |
| Lost profits | Generally excluded, with limited state exceptions |
| Sentimental value | Excluded |
| Legal and appraisal fees | Usually borne by each side; recoverable in some states on conditions |
Questions about compensation
The offer is less than I paid for the property
Your purchase price is relevant evidence but not controlling. The market may have moved, and what you paid may have reflected circumstances a hypothetical buyer would not share. It is still worth putting in front of the appraiser.
Do I get paid for the inconvenience
Not as part of the valuation. Relocation assistance covers defined categories of moving cost, and a few states compensate specific business losses. General inconvenience is not compensable anywhere.
Is interest paid on the money
In most states yes, from the date of taking or deposit until payment, at a rate set by statute or the court.
They are taking a strip and paying a rate per square foot. Is that right
It is a starting point for the land itself and it cannot capture damage to the rest of your property. Where the remainder is affected, the correct method is the before and after valuation.
Not sure what to do next
Most owners are reacting to a document they did not expect. Working through it in order is easier than it looks.