A special use property refers to a property that is only appropriate for one use or for a very limited use. Special use properties are generally those properties that are rare and pose problems locating comparable sales for appraisal valuation purposes. That valuation will undoubtedly overlook unique features of your property and be seriously insufficient. The government’s appraisers usually miss the boat entirely with special-use property appraisals. 

These types of properties generally fall within some type of special zoning classification or have a variance or special exception from the local zoning ordinances. This can create particularly difficult and complex appraisal problems, for which many real estate appraisers may not be competent.

Because comparable sales are difficult or sometimes impossible to locate, the sales comparison approach for property valuation is not applicable for special use properties. Although most real estate appraisers are generally aware of this, the government or condemning agency’s appraiser will almost always find a way to justify using the sales comparison approach to support his or her opinion of value.

Due to the uniqueness of the property and the appraisal problem, it is imperative that you consult with an attorney if you own a special use property or specially-zoned property that is being taken or affected by an eminent domain action.