When the government takes possession of your property in Texas, you usually have to receive compensation for your land. You may wonder, though, how the government determines how much compensation is necessary. We at Showalter Colgin & Davis, PLLC know this subject can be confusing for many people and we want to help you understand what just compensation actually means.
When you consider the term “just compensation,” you may think this means you will receive fair compensation for your property. According to FindLaw, just compensation means that you receive the value of your land so that your circumstances remain the same. There are many ways the government determines the value of your land. If the government wants to take a residential property, officials might consider recent sales in your area to determine how much your property is worth. Most of the time, this means that officials will compare the features of your house, such as your swimming pool and the number of bedrooms, with other homes on the market.
Additionally, government officials might offer you the fair market value of your property. They usually consider how accessible your property is and how large it is, as well as how developed the land is. They may also consider future uses for the land, as well as the current zoning. Additionally, officials may use the income levels of the property to determine how much it is worth. This means people consider how much it costs to keep up the property.
It is important to remember that determining just compensation is sometimes complicated. If you currently use the land for agriculture, officials may want to consider the income of the property based on the agricultural value. However, it may also be important to consider how much the land might be worth if someone used it commercially. When determining the value of your property, it is important to take all of these variables into account. You can find more information about this subject on our webpage.