Real Estate & Property Law

Underestimating Ohio Property

By Alan Ackerman

Newark Advocate

John Boesch's house stands vacant along Ohio 161, with the only sign of life being the big yellow one declaring his feelings for the state transportation agency.

Many of his neighbors lost their houses entirely to the new four-lane highway project, which is scheduled for completion in May 2010. The Ohio Department of Transportation has spent $41.6 million just on property acquisition, far more than it offered the dozens of property owners along the highway.

On average, property owners who took ODOT to court before giving up their land for the new Ohio 161/37 gained almost $250,000 more than they originally were offered, according to records obtained from the state in a public records request.

Of the people who ended up in court, the median increase they received was 82.8 percent greater than the original offer, or $65,000 more. By contrast, the additional money received by property owners by negotiating with ODOT or because of additional damages was 5.6 percent higher than the original offer, or $9,700 more.

In the end, the median amount property owners received was $154,000, including both people who lost their homes and those who lost land.

Bill and Helen Bettac joke about people wondering if they made millions. They received $165,000 for a house they were told was worth $285,000 by others.

Condemning agencies generally try to "do it right" although they often undervalue property.  However, the extent of underestimation described in the Newark, Ohio newspaper seems outside a statistically reasonable range of error.

Full post as published by National Eminent Domain Blog on June 08, 2009 (boomark / email).