State buying our house for a highway--any tips?

[Ottakee]

In 6-12 months MDOT will be buying our property to put up a new highway. We have known about it for years but now it is becoming more of a reality.

 

I was wondering if anyone has had this happen to them. They are supposed to give us 125% of the appraised value of our house/barn/property, pay for moving expenses, give us at least 90 days to relocate, etc.

 

The thing is, right now we have a 5 bedroom, 1 3/4 bath house with a family room, office, and 3 stall attached garage. It is NOT fancy but only about 22 years old. We also live on a nice gravel road in a township with good zoning for horses yet not too far out from town. We also have 5 1/2 acres, a 40x48 barn with stall, loft, etc. that was just put up in 2009. We have about 3 acres in improved pastures with nice fencing.

 

I am afraid that our appraised value will come in less than what it will cost to either buy land and duplicate what we have here or buy something similar. I did a search on realtor.com and there was nothing under $450,000 for a 5 bedroom house on 5 acres, etc. Now, I know our place isn't worth that much Those houses were a lot fancier but no horse facilities which make our property more valuable. I also don't want them to compare our house to someting 50 miles north of here in a very depressed area, etc. There are LOTS of homes for sale in our area but they are mostly 3-4 bedroom homes on city lots of 1-2 acres, not much for sale at all with at least 5 acres.

 

Has anyone ever had the state buy them out? Any tips?

[jonesloonybin]

Now this info was for Oregon, but keep looking, finding comparable houses/properties in the area and print out the sale listing. Call a realtor and ask them to come out and look at your property and tell you what they would list it for. Ask if they know of any comparable properties that are for sale now or sold recently, etc.

 

In Oregon, if the home owners would not cooperate, the state would just condemn the property and take it anyways.

 

Try to see if you area has any lawyers that deal with this kind of thing. They may be willing to do a free consult. Or maybe you may need one anyways if your state is one that uses lawyers for property transactions.

 

Also, some states might be willing to move your house to another property nearby. See if that is an option. If it is, call about price quotes. You need to be informed and prepared. They will most likely try to get away with giving you as little as possible, but if you are prepared with the above they usually decide it is easier to give you what you want, if possible, than to fight it out.

 

Again, this based on working in the OR Process and Condemnation Section. Michigan laws may be different.

 

ETA: Don't just look at prices, make copies, print out examples, etc.

Edited June 24, 2010 by jonesloonybin

[Mejane]

I'm sorry. I hate eminent domain. My best friend in high school had to move away because the state annexed their neighborhood for the local airport, then never used it. Thirty years later, it's still a fenced-in big empty lot. I do think they were paid a fair price, though. They moved to a nicer house in another town. Good luck; I hope things work out for you!

[Ottakee]

So far the word is that they are paying a fair price. I have not heard anything from anyone saying it is not fair.

 

I just want to have my ducks in a row before they come and be prepared. Our neighbor behind us has about 40 acres including 2 creeks and some sand dunes (think beach type sand) which is going to be valuable for mining reasons. He is researching the mineral rights, etc.

 

I will start looking for similar properties and keep some records of what they sell for, etc.

[BigMamaBird]

I'd seriously look into getting the services of a good lawyer who has experience in eminent domain issues. Not because you're expecting anyone to take advantage of you, but simply to protect your best interests.

[lisamarie]

If you haven't already, I would talk to MDOT and ask them what their plan is to ensure you are able to afford to replace what you already have with their offer. If you don't like their answer, I would talk with your local city manager and assessor/whoever determines what your property is assessed at. I would see what they have to say as far as what your house is worth, what your rights are to get a fair price that would enable you to buy an equal house/size/acreage/horse facilities. I would ask the assessor to pull sale records for comparable properties to yours if there are any. I would do what was already suggested and ask 3 realtors what they would list your house at to show what it's really worth. If that gets you no where, I would take it to your state representative. I know it's an election year for most people, so chances are they might be more favorable to come to your aid.

 

On the one hand, this is a GREAT time to buy a house in MI's stellar economy. On the other, if they are valuing your house based on today's prices, that doesn't seem fair with the way home values have dropped so much.

[LauraGB]

Since they won't be needing the buildings, is it an option to move the house and outbuildings to a new plot of land?

[simka2]

My dh is a ROW agent...don't shoot me ;) I let him read your post and this was his "unproffesional advice." :) Do not let the DOT do the appraisal...insist on haveing your own apprasial done. You can offer to submit a list of possible apprasers to them, but do not let them control this aspect.

 

Secondly, drag your feet a little...if you can, without threatening a lawyer. Hem and haw...make them sweat...it's kinda like playing chicken :) There should be some room for negotiation...talk about the cost to your children, your fences, everything. They really do want you off there as peacefully as possible and if a little extra money will do it...you might be suprised.

 

They way it works with Dh's firm is this. The moment you call in a lawyer (not the same as getting a lawyers advice), he turns his folder over to his firms lawyers. If something goes to condemnation the courts can only allow you what your property is worth. At least in our state.

 

I hope that helps...you can PM me if you like :)

[Remudamom]

I have no advice, but I'm angry for you. Time to move here maybe???? We have a house available??? Unfortunately, not many jobs in the area.

[LibraryLover]

Eminent Domain brings out the libertarian in me.

Edited June 24, 2010 by LibraryLover

[mamato3 all-boy boys]

My first thought is that you should spend the $300 ish dollars and get a full appraisal done on the property. A Realtors' appraisal is one piece of information, as is your town/county appraisal for taxes. But -- just like when getting a mortgage -- a full-on appraisal is the make-it-or-break it standard.

[fivetails]

I remember someone else posting about a situation like this last year (or year before? something like that) and I was completely shocked that someone's house could just be up & taken away like that! :001_huh:

[Ottakee]

I have been talking to the guy that is in charge of the buy out.

 

We will likely try to take the barn with us. We had it screwed together with the idea of moving it (it is a pole barn). The house is a bilevel which might make it harder to move. I need to ask a guy at our church about that as he moved houses for several years and his family still owns that business.

 

House values have dropped dramatically in our area as unemployment is at 22% right now (dh included) and that doens't include the people that don't qualify for unemployment that are looking for work--the seniors, moms, youth, recent graduates, etc.

 

That said, finding property in the 5 and up range (for zoning having 5 or more acres gives you tons more freedom) is more difficult as the area is being built up more and more. Then again, once the highway does come through other people might be willing to sell out.

[MyThreeSons]

I remember someone else posting about a situation like this last year (or year before? something like that) and I was completely shocked that someone's house could just be up & taken away like that! :001_huh:

 

It's not new. This happened to my great-grandmother back in the 40's.

[chiguirre]

I'd take a look at your tax assessment property value. If you think that's fair, you should be okay. If you're lucky, they haven't adjusted the property values for taxes to reflect the real estate collapse. If you don't agree with it, I'd definitely get a formal appraisal done so you have your own expert valuation.

 

Good luck!

[fivetails]

I remember someone else posting about a situation like this last year (or year before? something like that) and I was completely shocked that someone's house could just be up & taken away like that!

 

It's not new. This happened to my great-grandmother back in the 40's.

 

It might not be new, but I wasn't really familiar with it...and I just can't believe it happens. Well obviously I believe it - the OP's pants aren't on fire here - but you know what I mean! ;)

 

I don't know if it can happen here or not - I suppose I could go look it up, but I'm a little bit afraid of what I might find. Yes, I have a little bit of ostrich syndrome going on here. The idea that your home can just be taken away - even if they do pay you, it's still force because YOU didn't put your house up for sale! - is horrible. I don't understand why it's allowed to happen.

[KnitWit]

We have neighbors down the road facing the same thing. It's sad really, this is a family farm that has been handed down through several generations. Now, the road is cutting the property in such a way that it will take the house, and divide the acreage in such a way that it will not be easy for the heirs to divide it up. *Also*, they will have no access to the main part of the acreage without paying to cut a road in from another direction. Of course the DOT won't foot the bill.

 

Neighbors further down actually WANT to be bought out, but the road is just going through their backyard. The house is *just far enough* from the DOT property that they will be left....with a highway in the backyard. Yep...that's GREAT for resale...or, you just live with it.

 

:(

[Ottakee]

Neighbors further down actually WANT to be bought out, but the road is just going through their backyard. The house is *just far enough* from the DOT property that they will be left....with a highway in the backyard. Yep...that's GREAT for resale...or, you just live with it.

 

:(

 

We aren't too upset as the other option would be to look at the highway. We are the last house being taken out so our neighbors, house just about 200 feet from ours will be left looking at it.

 

We just want a fair price.

[KnitWit]

Well, the chatter around here is basically the same as the advice you've been given. I wish you the BEST!

[Mejane]

 

I don't know if it can happen here or not - I suppose I could go look it up, but I'm a little bit afraid of what I might find.

 

It can happen anywhere. It's a recognized power of government. People appeal, but it's a crap shoot. Just another thing to keep you up at night, right? ;)

[angela in ohio]

I'd seriously look into getting the services of a good lawyer who has experience in eminent domain issues. Not because you're expecting anyone to take advantage of you, but simply to protect your best interests.

 

I agree. There is no way I'd go through this without a real estate agent and an attorney. You need to already have numbers ready when they come to you.

[fivetails]

I don't know if it can happen here or not - I suppose I could go look it up, but I'm a little bit afraid of what I might find.

 

It can happen anywhere. It's a recognized power of government. People appeal, but it's a crap shoot. Just another thing to keep you up at night, right? ;)

 

Oh I meant because of the whole different country/different government thing. I don't know what the Canadian laws are...

 

(I'm surprised, though, that people haven't stood up together and fought the law down where it does apply... maybe it doesn't happen enough for people to notice...or a lot are like me, completely unaware that the government has that power.)

[Mejane]

Oh I meant because of the whole different country/different government thing. I don't know what the Canadian laws are...

 

Oh, sorry! I need to look to see where people are. :001_smile:

[Mom in High Heels]

I used to be a ROW agent and had planned to say pretty much what the pp, whose husband is a ROW agent, said. Ask your agent if you can see what properties they will be using for comps.

Are they also paying for fences, landscaping, salable trees, etc? If not, ask for it. Especially the trees. I had one land owner who go paid and additional $30K just for trees. Guess who had to count all those trees? That would have been me. I did so in fabulous polka-dotted wellies BTW. ;)

[fivetails]

Oh I meant because of the whole different country/different government thing. I don't know what the Canadian laws are...

 

Oh, sorry! I need to look to see where people are. :001_smile:

 

No problem ~ I don't always check either, and sometimes it's hard to tell. You, for instance, appear to be swinging through the jungle....

 

...or you never cut your lawn. :w00t:

[Mejane]

No problem ~ I don't always check either, and sometimes it's hard to tell. You, for instance, appear to be swinging through the jungle.

 

Or you never cut your lawn. :w00t:

 

LOL! That's my man Tarzan. We live in CT. ;)

[4wildberrys]

My first thought is that you should spend the $300 ish dollars and get a full appraisal done on the property. A Realtors' appraisal is one piece of information, as is your town/county appraisal for taxes. But -- just like when getting a mortgage -- a full-on appraisal is the make-it-or-break it standard.

 

 

Just to clarify here---you want a professional appraisal done by a Licensed Real Estate Appraiser ;) Most Realtor's are not professionally licensed to do proper scope appraisals---even thought they are cheaper. My dh is a Real Estate Appraiser---and now because of the new laws supposedly making over-valuation not possible, we compete with unlicensed Realtor's for our business :001_huh: Thanks Mario Cuomo :glare:

 

Good luck! Our friend's in Boise were bought out by the city too---but when they went to buy they found that comparable properties were much more than what the city was offering. They most definitely had to hire a lawyer to make sure they were paid fairly to relocate.

[Nicole M]

It's not new. This happened to my great-grandmother back in the 40's.

 

This also happened to my grandparents in the 1970s, in Ohio. Their beautiful farmhouse is now an historic site along the freeway. It's upsetting.

[LauraGB]

Guess who had to count all those trees? That would have been me. I did so in fabulous polka-dotted wellies BTW. ;)

 

 

:lol: Love it!

[Mejane]

This also happened to my grandparents in the 1970s, in Ohio. Their beautiful farmhouse is now an historic site along the freeway. It's upsetting.

 

I'm sorry. At least they didn't tear it down and put up a shopping mall. :glare:

[angela in ohio]

Oh I meant because of the whole different country/different government thing. I don't know what the Canadian laws are...

 

(I'm surprised, though, that people haven't stood up together and fought the law down where it does apply... maybe it doesn't happen enough for people to notice...or a lot are like me, completely unaware that the government has that power.)

 

It's become more of an issue recently. It used to be used for public works only - highways, state universities, etc. But now in our area, it has been used for private entities - businesses that want to relocate or expand. That has brought media attention and public outcry. With the economic situation in Ohio and Michigan, though, many people are on the other side, just relieved that a business will stay here.

[Teachin'Mine]

Your "unprofessional" advice from someone in the know sounds good to me. :) I'd also be looking for a house and property that suits what you need - similar to what you have, no matter what the price range. Make copies of all the listings that work for you, and aim for that price for your property. Make a list of all your expenses involved in moving. Consider the fencing, soil improvements, landscaping if needed, cost for re-locating the barn, etc.. I think it would be great to move the pole barn, and maybe even some of the fencing if it's in good shape, but moving houses can put some stress on them and isn't ideal. You should focus on the square feet of your home and number of rooms, rather than the amenities. If your comparables are with more amenities, that just can't be helped. :D I hope you're able to move to a great house and property. :)

[simka2]

I used to be a ROW agent and had planned to say pretty much what the pp, whose husband is a ROW agent, said. Ask your agent if you can see what properties they will be using for comps.

Are they also paying for fences, landscaping, salable trees, etc? If not, ask for it. Especially the trees. I had one land owner who go paid and additional $30K just for trees. Guess who had to count all those trees? That would have been me. I did so in fabulous polka-dotted wellies BTW. ;)

 

Ha! I totally spaced trees...and ponds especially if you "happened" to scatter a loved ones ashes in it ;) (yes that really can get you more!)

 

Have any plants you planted that you cannot take with you...Go to a nursey and find out how much a mature plant of about the same size would be.

 

I cannot tell you how many times Dh was so happy people calmly but confidently stood up for their rights. When he got to hand over a check that was 3 times the size of the person two properties over he was pretty happy!

[lynn]

Happened to my great grandpa years ago. He washolding out for more money, and story goes offer was take it or leave it and an interstate went through the property so part is absolutely useless land lock mess.

[angela in ohio]

A new shopping center went in on the west end of the city we live near. One person held out on the offer to buy his property. Now there is a big shopping center wrapped around a little lone house. The rest of the road has been built up, and there are no houses for miles in either direction except that one. I'm not a person who's attached to property, so I can't understand, but he must have REALLY wanted to keep that house. :001_smile:

[simka2]

A new shopping center went in on the west end of the city we live near. One person held out on the offer to buy his property. Now there is a big shopping center wrapped around a little lone house. The rest of the road has been built up, and there are no houses for miles in either direction except that one. I'm not a person who's attached to property, so I can't understand, but he must have REALLY wanted to keep that house. :001_smile:

 

That makes me think of "UP" :)

[angela in ohio]

That makes me think of "UP" :)

 

:D My ds said the other day when we passed it that he is waiting for the balloons to appear over it.

[jplain]

Haven't read whole thread, so maybe this has already been suggested, but consider getting 2 or 3 independent appraisals, including one from the company that the state will be sending out. Before they come out, do your homework and figure out what the most reasonable comps are. Print them out and give copies to your appraisers, to make sure they include them in their analyses.

 

If the state's appraisal differs significantly from the average of your three, find out how to challenge their appraisal. Be sure your appraisals are done within 60-90 days of the official appraisal, ideally within 30 days.

 

In all cases, be available to escort the appraiser around your property, so you can point out assets that might otherwise be overlooked.

 

Good luck!