Property ValuationIntermediateDelaware Exam

What is a 'before and after' appraisal in the context of partial takings?

ASimply an informal appraisal comparing only the property's value before and after routine renovation work, which most practitioners would generally accept
BAn appraisal used in eminent domain partial takings — comparing the property's value before the taking with the value of the remainder after the takingCorrect
CAn appraisal of a property before and after a market downturn
DAn appraisal comparing values before and after a new development nearby

Why An appraisal used in eminent domain partial takings — comparing the property's value before the taking with the value of the remainder after the taking Is Correct

Answer B: An appraisal used in eminent domain partial takings — comparing the property's value before the taking with the value of the remainder after the taking

In a partial taking (government acquires part of a property through eminent domain), just compensation equals: Value Before Taking − Value of Remainder After Taking. The 'before and after' approach captures both direct damages (value of land taken) and consequential damages or special benefits to the remainder.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

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