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Fair market value in Florida eminent domain

The base measure, the assumptions inside it, and why two appraisers reach different numbers.

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Fair market value is the price a willing buyer would pay a willing seller, neither under compulsion and both reasonably informed. It is the starting point for every condemnation valuation.

It is also a conclusion built on assumptions. Change the view of what the land could best be used for, or which sales are genuinely comparable, and the number moves a long way without any arithmetic error.

The short answer

Fair market value is the base, not the whole. In Florida it is the first component of full compensation, not a substitute for it.

How a valuation is built

1

Identify the interest

Fee, permanent easement or temporary construction easement.

2

Determine highest and best use

Legally permissible, physically possible and financially feasible.

3

Select comparable sales

Similar in size, zoning, frontage, access and date.

4

Adjust the comparables

For differences between them and your property.

5

Conclude a value for the property taken

The first component.

6

Value the remainder before and after

Where severance damages are established.

7

Consider business damages

Where section 73.071(3)(b) applies.

How to read an appraisal critically

Check highest and best use first

If it assumes a lesser use than the land plainly supports, everything downstream is understated.

Look at the dates of the comparables

Sales from a different market period need adjustment, and sometimes cannot carry the weight placed on them.

See whether access was modelled

An appraisal that does not mention the driveway probably did not value its relocation.

Ask whether the remainder was valued

On a partial taking, an appraisal with no before and after analysis has not addressed severance at all.

Frequently asked questions

Is the tax assessed value the same as fair market value?

No. Assessed value is produced for taxation on a mass appraisal basis and is not evidence of what a property would fetch in a sale.

Can I use my own appraiser?

Yes, and on contested partial takings owners commonly do. Section 73.091 is relevant to the cost.

What if the appraisal only valued the strip?

Then it has not addressed severance damages or the remainder, which on a partial taking is usually where the larger figure sits.

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