Market value is defined as: “[T]he price which the property would bring when it is offered for sale by one who desires, but is not obliged to sell, and is bought by one who is under no necessity of buying it taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available in the reasonable future.” City of Austin v. Cannizzo, 267 S.W.2d 808, 815 (Tex. 1954).
In Texas condemnation law, market value property reflects all factors that buyers and sellers would consider in arriving at a sales price. City of Harlingen v. Estate of Sharboneau, 48 S.W.3d 177, 185 (Tex. 2001). In City of Austin v. Cannizo, the Texas Supreme Court explained, “[i]n the willing seller-willing buyer test of market value it is frequently said that all factors should be considered which would reasonably be given weight in negotiations between a seller and buyer.” 267 S.W.2d 808, 814 (Tex. 1954).
The three general approaches to estimating property value are (1) the sales comparison approach, (2) the income capitalization approach, and (3) the cost approach. The approach that is to be used during the valuation process typically depends on the property, the intended use of the appraisal, the identified scope of the work, and the quality and quantity of data available. All three approaches may be applicable to a particular property, but the highest and best of the property may make one approach more relevant to determining the highest value for the property. Evidence concerning fair market value of property and/or other issues impacting value can be from:
- The Property Owner
- Land Planners
- or any other person who is qualified to offer testimony concerning the damages to the property.