When the government plans to condemn a commercial property, a lot of business owners make decisions they later come to regret. Some of them feel rushed and try to act fast simply because they want the problem to go away. However, such actions without a plan can cause serious financial loss in the long run.
There are several common mistakes that business owners make in situations like this. For instance, when a Commercial property targeted for condemnation is put on notice, the management signs the first offer they get. This is a big mistake you should never make. So, in this article, we’ll take a look at the most common mistakes you must avoid when your commercial property faces condemnation.
Avoid Signing the First Offer
When the government makes their first offer for your condemned commercial property, it might look like the final word, but it’s usually just the beginning. Unfortunately, this is the point where many owners sign the offer. Most of them do so because they feel pressured or they don’t want the process to take too long.
But early offers often leave out important details that affect how much the property is really worth. This is intentional because once you accept the offer, you can’t change your mind. Below are common issues with early offers:
- The offer might not cover lost access or income.
- It might not cover plans that would have increased the value of the property.
- It might use an incorrect measurement of the land or building.
We always recommend that you take time to review the offer. This will allow you to discover some or all of the issues we just listed. It may be challenging to wait to go through all of these, but it can save you years of regret.
Do Not Skip an Independent Appraisal
Every owner should get a separate appraisal from a qualified expert. This is important because the highest and best use of the land is not always taken into account during government appraisals. They may overlook things like future profit potential or improvements that increase value.
Whereas an independent appraisal gives you a holistic view and provides you with solid evidence to help you negotiate. In addition, a private appraiser for your condemned commercial property can also find mistakes in the government’s report. You can read this article to learn how to choose an appraiser.
There are times when the square footage or zoning information is incomplete. Because of these mistakes, the amount offered could drop by thousands of dollars. So, even though a second opinion may cost you money, it can protect you in many other ways.
Get Legal Help Early
One of the biggest mistakes you can make is to deal with the condemnation process by yourself. Instead of doing that, ensure you hire the services of an eminent domain lawyer. This professional will explain your rights and guide you through every step.
In addition, they will inform you of important deadlines and ensure you don’t miss them. A lot of business owners often make this crucial mistake. In the end, they are unable to get the compensation you deserve because they failed to challenge the offer before the legal deadline passed.
Another reason why you need a lawyer is for them to communicate with the government on your behalf. This ensures that emotions don’t get in the way and that no one says anything that hurts the claim. Having legal support makes things clearer when they seem to be somewhat confusing.
Don’t Overlook Business Damages
Your land is not the only thing condemnation affects. It could affect daily business operations and customer activity. Sadly, some owners only think about how much the building is worth, without realizing the law has allowance for business loss claims. Those who skip this claim end up with a lower compensation than what they are due.
Damages to a business may include:
- Loss of parking that reduces customer visits.
- Changes to driveways that block deliveries.
- Short-term closures during construction.
These issues can cause the business to suffer a reduction in income for a long term even after the change of property ownership. This is something that a lawyer or an appraiser can help you understand. Also, making plans early can help you avoid surprises during relocation.
Keep Strong Records and Documents
Poor documentation can weaken your claim and reduce compensation. This is why property owners need to keep good records of repairs, upgrades, and leases. Without the right paperwork, it’s hard to show how much the property is really worth.
Furthermore, experts can build a stronger case for you when you have organized files. It is also a good idea to write down how the change impacts the remaining property. properties. If part of the land is taken, the rest may not work as well for business.
Therefore, we recommend you take photos of the property and the notes of changes. You can visit https://medium.com/ to learn how to prepare your commercial building for a photo shoot. This includes blocked signs or reduced access points. Small details like these can make a big difference during negotiation.
Conclusion
Dealing with condemned commercial property is stressful, but it’s easier if you don’t make the common mistakes we just talked about. If you stay calm and take informed steps, you have the best chance of getting a fair result. While you can’t control what the government plans, you can control how you react to them.
The post Mistakes to Avoid If Your Commercial Property Faces Condemnation appeared first on The Startup Magazine.
