Homeowners often make critical mistakes when facing eminent domain, such as not hiring an attorney early or accepting the first offer, which can lead to significant financial losses. Eminent domain law is complex and varies by state, necessitating understanding “just compensation” and adhering to strict deadlines. Property owners should seek independent appraisals, account for all damages including “severance damages,” and consider challenging the taking to protect their rights and secure fair market value.

What Is Eminent Domain?

Eminent domain is the government’s constitutional right to take private property for public use—such as roads, schools, and utilities—as long as they pay “just compensation.” But here’s the catch: what the government considers fair may be far less than your property’s actual value.

Related: “Just Compensation” Explained: What You’re Really Owed »

Top Legal Mistakes Homeowners Should Avoid

1. Not Hiring an Eminent Domain Attorney Early

The Mistake: Many homeowners attempt to handle negotiations themselves or delay hiring a lawyer.

Why It Hurts:

• The government’s lawyers and appraisers are not on your side.
• You may unknowingly waive rights or agree to unfavorable terms.
• Key defenses or valuation claims must be raised early in the process—or they’re lost.

Pro Tip:
Consult with an experienced eminent domain attorney as soon as you receive a notice. Many work on a contingency basis—they only get paid if they win more for you.

2. Accepting the First Offer at Face Value

The Mistake: Believing that the government’s offer represents true market value.

Why It Hurts:

• Initial offers often undervalue land or structures.
• They may ignore:
  
  • Severance damages (loss in value of remaining property)
  • Relocation costs
  • Lost business income

Example:
Let’s say the government offers $225,000 for a commercial property. An independent appraisal might show:

• Land: $180,000
• Building value: $150,000
• Business relocation costs: $30,000
• Severance damages to remaining land: $20,000
  Total fair value = $380,000

That’s a $155,000 difference.

Pro Tip:
Always get an independent appraisal before accepting any offer. You could uncover hidden value the government failed to consider.

3. Misunderstanding the Meaning of “Just Compensation”

The Mistake: Assuming “just compensation” equals assessed value or your purchase price.

Why It Hurts:

• “Just compensation” should reflect fair market value—not just what’s on your tax bill or loan documents.
• Partial takings require compensation not just for the part taken, but for any decrease in value to the remaining property.

Pro Tip:
Talk to your attorney about “highest and best use” valuation—sometimes land can be valued more based on what it could be used for, not just what it’s currently used for.

4. Missing Critical Deadlines

The Mistake: Failing to respond or act within the strict legal timelines set by eminent domain laws.

Why It Hurts:

• Deadlines vary by state and can be as short as 30 days.
• Miss a deadline and you may lose the right to object, negotiate, or challenge the taking.

Example:
A Notice of Condemnation might give you 30 days to file an answer or request a hearing. Day 31? Your rights could be waived.

Pro Tip:
As soon as you receive notice, calendar all deadlines and get legal advice immediately. Don’t assume you have time.

5. Allowing Government Access Without Representation

The Mistake: Letting appraisers or engineers enter your property without oversight.

Why It Hurts:

• Their reports may undervalue improvements or minimize impacts.
• You may lose the chance to correct or contest findings if you weren’t there to observe or document.

Pro Tip:
Insist that any visits be scheduled with notice, and that you or your appraiser/lawyer are present.

6. Overlooking Impacts on the Remaining Property

The Mistake: Focusing only on the land being taken—not on the property that remains.

Why It Hurts:

• Losing a portion of land can impact access, aesthetics, zoning, or even livability.
• These “severance damages” are often compensable.

Example:
A homeowner loses 20 feet from the front yard for a sidewalk project. The remaining lot is now too small to rebuild under new zoning codes. That’s a major value loss—and you can be compensated for it.

Pro Tip:
Ask your attorney whether the entire property value has dropped because of the taking—even if only part was physically taken.

7. Assuming You Can’t Fight Back

The Mistake: Believing that the government always has the right to take your property, and you can’t stop it.

Why It Hurts:

• Some takings are not legally valid:
  
  • Not truly for public use
  • No clear necessity
  • Violations of procedure

Pro Tip:
Ask your lawyer if you can challenge the taking through a “necessity defense” or a motion to dismiss. Even if you don’t win, it can give you leverage in negotiation.

Comparative Chart: Government Offer vs. Negotiated Compensation

Component	Government Offer	After Legal Negotiation
Land Value	$150,000	$180,000
Building Value	$50,000	$120,000
Relocation Costs	$0	$20,000
Business Loss	$0	$30,000
Severance Damages	$0	$25,000
Total	$200,000	$375,000

Frequently Asked Questions

Can I stop the government from taking my land?

Possibly. If the project is not for public use or the process was flawed, you may have grounds to challenge it. An experienced attorney can help assess this.

How much compensation am I entitled to?

At minimum, fair market value, but you may also receive severance damages, relocation costs, and business losses if applicable.

What if I can’t afford an attorney?

Many eminent domain attorneys work on a contingency basis, meaning they’re paid only if they recover more money for you.

Key Takeaways

• Act early—consult a lawyer as soon as you’re notified.
• Never accept the first offer without an independent appraisal.
• Understand your rights to full compensation, not just for the land, but for damages, relocation, and business impacts.
• Stay organized and track all deadlines—they are legally binding.
• Challenge when appropriate—you may have more leverage than you think.

Final Thoughts

Eminent domain can feel like David versus Goliath—but being informed and proactive can tilt the odds in your favor. By avoiding these top legal mistakes, you protect your property’s full value and secure the compensation you truly deserve.

📞 Ready to take the next step?
Use our Compensation Calculator or speak with an attorney today to get a clearer picture of what you’re really owed.