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Los Angeles Property Valuation Lawyers

Property Valuation Attorney in Los Angeles Seeks Maximum Compensation

Property valuation can have a huge effect on your bottom line. For example, in Paramount Pictures Corp. v. County of Los Angeles, the California Court of Appeal, Second Appellate District, determined that the board affirming that the County of Los Angeles Assessor’s Office correctly assessed the studio’s real and personal property at $137,397,278 for the tax year 2011. Paramount, who lost the case, argued that the property was only worth $71.7 million.

An accurate and thorough valuation of property is invaluable to property owners in many circumstances, especially those facing an eminent domain action by a government agency. A property valuation should be as complete as possible to ensure that the property owner receives the full fair market value of the property, including any improvements and business goodwill. Peterson Law Group PC prides itself on ensuring that the full fair market value of the property is recognized.

For over 35 years, Peterson Law Group PC has been fighting to protect property rights in Los Angeles. Our firm has been selected for the Best Law Firms award by Best Lawyers. Founding attorney John Peterson has been recognized by U.S. News, and he belongs to the exclusive Million Dollar Advocates Forum.

Call (213) 236-9720 to find out what we can do for you today.

What California Eminent Domain Law Has To Say About Your Case

Both federal and California eminent domain law require that a property owner receive “just compensation” from the government when an agency acquires the owner’s property under eminent domain. Just compensation is usually understood to be the fair market value of the property and other valuables related to the property. Some common losses that must be compensated include:

• The value of the land;
• The value of any improvements to the land, including buildings, fixtures, equipment, or other items that are generally understood to be permanently attached to the land;
• The value of any leases pertaining to the land;
• In state cases, the value of the loss of business goodwill, if the loss cannot be prevented by relocating the business or by any other reasonably prudent measures the business owner could take to preserve it.

Even if a business is relocated, loss of goodwill may occur in the form of patrons who may not come to the new building, reduced income, or higher expenses.

Since a government agency is required to make an offer to buy the property before beginning an eminent domain action, an agency will usually send an appraiser to obtain an estimate of the property’s value. Real estate appraisal is an art, not a science, and two appraisers may differ in their estimation of a property’s value by thousands or perhaps even millions of dollars. The skilled Los Angeles eminent domain lawyers at Peterson Law Group PC know the credentials of local appraisers and will choose a highly qualified appraiser to review a property, which may result in a significantly higher appraisal amount.

Seek a Lawyer With the Necessary Jury Trial Experience

In California, property owners have the legal right to present their valuation evidence, including an independent appraisal, to a jury. The jury then determines an appropriate amount for the government agency to pay in compensation to the property owner. Since the opportunity to present evidence to a jury is valuable, a property owner must choose a Los Angeles eminent domain attorney carefully, ensuring that they have a strong record of experience in jury trials.

At Peterson Law Group PC, we offer practical experience reflected in jury trial results. Our lawyers have obtained jury verdicts for clients in cases including, for example:

• $10.5 million verdict on auto dealership property adjacent to the 405 freeway, where the initial offer to the client was $5.4 million;
• $4.0 million verdict for vacant land across from the Staples Center in downtown Los Angeles, where the initial offer was $840,000;
• $795,000 verdict for loss of business goodwill for a marine equipment supply company that was required to relocate. The agency’s appraiser initially concluded that there was no loss of goodwill at all.

Peterson Law Group PC works with highly qualified appraisers and experts on each eminent domain case. We strive to provide the best possible representation while remaining aware of the need for cost-effective litigation. Please contact us today to discuss the details surrounding your particular situation and to learn more about how we can help.

Impact of Property Location on Valuation in Los Angeles

Proximity to key infrastructure is a critical determinant of property value. Properties located near essential amenities like airports, highways, and public transportation hubs generally command higher prices. This is because easy access to these facilities enhances convenience, reducing travel time and costs for residents and businesses. In Los Angeles, properties near major freeways or Metro stations are particularly sought after due to the city’s notorious traffic congestion. And proximity to hospitals, educational institutions, and shopping centers also significantly boosts property value.

Regional geographical factors play a major role in determining property value. In Los Angeles, the varied landscape—from beaches to deserts to the mountain—creates a diverse property market. Properties with ocean views or beachfront access, such as those in Malibu or Santa Monica, tend to command premium prices due to their scenic value and desirability. Similarly, properties in elevated areas with panoramic views, like the Hollywood Hills, are also highly valued.

Properties in regions prone to natural disasters, such as earthquakes or wildfires, may see diminished values due to increased risk and insurance costs. Microclimates within the city can impact property desirability; areas with favorable weather conditions, such as cooler weather, are generally more sought after.

Local economic conditions are a significant factor when it comes to local property value. A robust local economy often translates to higher employment rates, increased consumer spending, and a more vibrant real estate market. Properties located in economically thriving areas, such as Silicon Beach or downtown Los Angeles, typically see higher demand and appreciation. Areas suffering from economic downturns may experience reduced property values due to declining demand and increased vacancy rates.

Demographic shifts profoundly impact property values. In Los Angeles, population changes, including age distribution, income levels, and migration patterns, can create fluctuations in the real estate market. For example, an influx of young professionals to urban centers like downtown Los Angeles can drive up demand for apartments and condos and increase property values in these areas.

An aging population may boost demand for single-story homes or properties in quieter neighborhoods, affecting the market dynamics differently. Over time, shifts in income levels and family sizes influence housing preferences, with higher-income populations often seeking luxury properties and larger homes.

How Environmental and Legal Issues Impact Los Angeles Property Valuation

Environmental impact assessments (EIAs) are a major tool in determining property value. In Los Angeles, properties undergo EIAs to evaluate potential environmental risks and liabilities. These assessments consider factors such as soil contamination, air and water quality, and the presence of hazardous materials.

A property with a positive EIA is deemed environmentally safe, which can enhance its market value. But properties flagged for environmental concerns may experience reduced value due to the potential costs of remediation and legal challenges. EIAs can also influence development approvals and zoning changes. Potential environmental liabilities can significantly impact property value. In Los Angeles, properties may be subject to risks such as soil contamination, hazardous waste, or proximity to industrial sites. These liabilities can lead to costly remediation efforts, legal battles, and reduced market appeal. For example, a property located near a former industrial site may require extensive cleanup, which can deter potential buyers and investors.

Properties located in areas prone to natural disasters like wildfires or floods may face increased insurance costs and stricter building regulations, further affecting their value. Investors and property owners must conduct thorough due diligence to identify any environmental liabilities associated with a property.

Land Valuation Methods and Techniques in Los Angeles

Comparative market analysis (CMA) is a widely used method for property valuation. This approach involves comparing the subject property to similar properties that have recently sold in the same area. Key factors considered in a CMA include property size, age, condition, and location. In Los Angeles, where real estate markets can vary dramatically between neighborhoods, a thorough CMA can provide valuable insights into a property’s fair market value.

The income approach is a valuation method primarily used for income-generating properties, such as rental buildings or commercial real estate. This approach evaluates a property’s value based on its potential to generate income. In Los Angeles, where rental demand is high, this method provides a realistic measure of a property’s worth. The income approach involves calculating the net operating income (NOI) by subtracting operating expenses from gross rental income. Then, the capitalization rate (cap rate) is applied to the NOI to estimate the property’s value.

The cost approach is a valuation method that estimates a property’s value based on the cost to reproduce or replace it minus depreciation. This technique is particularly useful for new constructions or unique properties in Los Angeles, where comparable sales might be scarce. The cost approach involves calculating the total cost of building the property at current prices, including materials, labor, and other construction costs. Then, any depreciation due to wear and tear, age, or obsolescence is subtracted to arrive at the property’s value.

Appraisal Disputes and Resolution in Los Angeles

Common appraisal discrepancies often arise from differing opinions on a property’s condition, market trends, or comparable sales. In Los Angeles, where real estate markets can be volatile, these discrepancies can be particularly pronounced. One frequent issue is the misjudgment of a property’s condition, where appraisers may have varying standards for what constitutes excellent, good, or fair condition.

Market trends can also cause discrepancies, as appraisers may rely on outdated data that doesn’t reflect recent market shifts. The selection of apparently comparable properties can also lead to differences in appraised value – properties considered comparable may actually vary significantly in terms of location, size, or amenities. These discrepancies can result in substantial differences in property valuation, affecting mortgage approvals, sales negotiations, and investment decisions.

Effective strategies for resolving appraisal disputes are essential for ensuring fair property valuations. One common approach is to request a reconsideration of value (ROV) from the appraiser. This involves providing additional information, such as recent comparable sales or evidence of property improvements, to support a higher valuation.

One potentially effective appraisal strategy is to obtain a second appraisal from a different, independent appraiser to compare findings. If discrepancies persist, engaging in negotiations can help parties reach a mutual agreement. In some cases, mediation or arbitration may be necessary to resolve conflicts, especially in high-stakes transactions.

Litigation may be necessary when appraisal disputes cannot be resolved through negotiation or mediation. In Los Angeles, where property values can significantly impact financial decisions, litigation may be the only recourse to ensure a fair appraisal. Legal action typically involves filing a lawsuit against the appraiser or the appraisal firm for negligence or breach of contract. This process requires thorough documentation of the dispute, expert testimony, and a clear demonstration of how the appraisal errors have caused financial harm.

Speak with an Experienced Los Angeles Property Evaluation Attorney Today

Peterson Law Group PC has won substantial settlements for property owners harmed by unfair government action. John Peterson shares his legal knowledge on local television and national radio shows.

Call (213) 236-9720 to learn more today. Our Los Angeles property evaluation lawyers are ready to help with your case.