There is far less supply than demand on the San Diego real estate market these days. Buyers need to be competitive in what they offer regarding both price and terms for a purchase. Sellers are in an excellent position to maximize the return made on a real estate investment.
A lot of competition in the real estate market drives up prices. Sometimes, those price increases affect not just those who want to sell their property but also those at risk of losing their property through condemnation.
Under California eminent domain laws, the state can effectively force an individual to sell a property in certain situations. The current real estate market may have implications for those facing the condemnation of their property in the near future.
Condemnation proceedings require a fair market value offer
The unfortunate thing about eminent domain proceedings is that many homeowners are not in a position to save their property from condemnation. In some cases, disputing the condemnation of a property may be possible.
Other times, the homeowners will have few options for retaining their property and instead should focus on receiving a fair value for it. Seizures of real estate under eminent domain laws require that the owner receive an appropriate offer for the current value of the property.
With the California real estate market so hot and prices so high, that may mean that an appraisal does not accurately reflect what you would make if you sold your property. Many homes now sell after multiple bids, meaning the appraised value of a home or its listing price would actually be lower than its current fair market value.
You don’t have to accept the first offer
Developers planning big projects may not make offers that reflect the current prices of the properties in question but rather their prices established when development planning began. It is easy to feel intimidated by condemnation and eminent domain proceedings, but you still have rights as a property owner.
Countering low offers or even going to court to prove that your home is worth more than what the developer will currently pay may be worth your while in some cases. The better you understand real estate laws in California, the easier it will be to respond appropriately to an attempt to condemn your home.