Undeveloped land is a parcel of real estate that has not been built upon or significantly altered for commercial, residential, agricultural, or industrial purposes. This type of land typically lacks infrastructure such as roads, utilities (water, sewage, electricity), or other improvements that would make it ready for immediate use or development.

When the government or a utility seeks to take all or part of undeveloped land through eminent domain, the law requires they determine the fair market value of the land at the time of the taking.

Often, the appraisers hired by the government or taking agency will not have special knowledge of undeveloped land valuation.

Even if the land is undeveloped, it is appraised based on its "highest and best use" — what the land could potentially be used for, such as residential development, industrial use, or agricultural production. This hypothetical potential is crucial in determining its value.

Variables in determining fair compensation for undeveloped land

• Partial Takings:
  If only a portion of the land is being taken, the valuation must consider the impact on the remaining land. This could involve:

• Severance damages: Compensation for the decrease in value of the remaining land due to the partial taking. For example, if part of a property is taken for a highway, the remaining land may lose value if access is restricted or it becomes less desirable.

• Agricultural Land: If the undeveloped land is being used for farming, valuation will consider soil quality, crop yields, and other factors specific to agricultural use.

• Timberland or Mining Land: If the land contains valuable natural resources, such as timber or minerals, the value of those resources will be factored into the overall valuation.

• Environmental Considerations:
  If the undeveloped land contains wetlands, endangered species habitats, or other environmental restrictions, these may limit the future use of the land and reduce its value.

• Benefits: In some cases, the landowner may also receive benefits, such as improved access or infrastructure, that could increase the value of the remaining land. These benefits are sometimes deducted from the compensation awarded.

Indiana Property Rights attorneys have extensive experience representing landowners with undeveloped parcels selected for eminent domain takings. When necessary, we will engage with trusted experts to provide the most accurate, comprehensive valuation for your undeveloped property.

Contact our attorneys for a free consultation, site visit, and to learn more about your legal rights and options if your property is named in a condemnation matter.