US Department of Homeland Security Wants to Buy My Land!

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EquityMind_IHB

New member
I own several acres of land in Texas that butts up against the Rio Grande River. I recently received an offer letter from the US Army Corps of Engineers acting on behalf of the Homeland Security Department that are under orders to buy up 20 adjacent lots (of which mine is in the middle) in order to fortify our borders against illegal immigrants and drug trafficking etc (actually spelled out in the offer letter). They are offering $22,893 an acre based upon 'fair market value' of their 'approved appraisal' (no indication whether a third party did the appraisal). When asked for a copy of the appraisal report, the representative for the Army Corps stated that the appraisal couldn't be given until after the close of escrow. When asked about comparables as to what the Army had been paying for similar lots, I was told that that was confidential information.



So what to do? My attorney stated I don't have to sell but they may begin 'eminent domain' proceedings and take the property anyway at fair market value. Since this is a law and must be done - what are my options? I know never to take the first offer but if I refuse at their asking price will they negotiate? I'd like to think that I am in the driver's seat here. The best compromise I can think of is to lease them the land and having Uncle Sam as a tenant for the next few years with direct deposits sounds like a great option but does the gov. do that? Do they have to own my land in order to fortify the border? This is waterfront property after all - LOL - I'd be losing my view! (this is undeveloped raw land BTW).



Any advice would be extremely welcome!
 
<em>"I?d like to think that I am in the driver?s seat here". </em>



LOL ! (sorry)



My initial thoughts are that if you don't sell willingly, the gubmint is going to take your land via eminent domain. I'm thinking they wouldn't want to lease it, that just muddies the process.



Wow ! I think you're stuck !
 
Get an architect to draw plans for a Pan-americal visitor welcome center on your land.



Just come back with your fair value estimate of $37,117 an acre. They may say no or they may say yes.
 
I would counter with a number 20% higher, and accept what they offered you initally if they reject it.



The price they are offering you is more than fair. BTW, you are NOT in the drivers' seat on this one. You are simply a passenger who won the lottery, so to speak.
 
[quote author="EquityMind" date=1212133749]I own several acres of land in Texas that butts up against the Rio Grande River. I recently received an offer letter from the US Army Corps of Engineers acting on behalf of the Homeland Security Department that are under orders to buy up 20 adjacent lots (of which mine is in the middle) in order to fortify our borders against illegal immigrants and drug trafficking etc (actually spelled out in the offer letter). They are offering $22,893 an acre based upon 'fair market value' of their 'approved appraisal' (no indication whether a third party did the appraisal). When asked for a copy of the appraisal report, the representative for the Army Corps stated that the appraisal couldn't be given until after the close of escrow. When asked about comparable as to what the Army had been paying for similar lots, I was told that that was confidential information.



So what to do? My attorney stated I don't have to sell but they may begin 'eminent domain' proceedings and take the property anyway at fair market value. Since this is a law and must be done - what are my options? I know never to take the first offer but if I refuse at their asking price will they negotiate? I'd like to think that I am in the driver's seat here. The best compromise I can think of is to lease them the land and having Uncle Sam as a tenant for the next few years with direct deposits sounds like a great option but does the gov. do that? Do they have to own my land in order to fortify the border? This is waterfront property after all - LOL - I'd be losing my view! (this is undeveloped raw land BTW).



Any advice would be extremely welcome!</blockquote>




If you believe the government is buying your land for its stated purpose (national security, border defense), then it'd be a patriotic thing to do to accept the offer, or even negotiate for a little more in your favor.
 
[quote author="no_vaseline" date=1212139328]I've been in this spot (sort of) before.



Outside of the governments interest, what's it really worth? $300 an acre?</blockquote>


Some of the comparables I've been able to find are three years old at the most recent and range from 16,500 (industrial) to $17,500 (waterfront) per acre. Their appraiser came to that figure by factoring in a 1 or 2 percent per month gain over time.
 
Sounds like a premium over what it's really worth if you could find somebody to sell it to. How many acres total is this piece?
 
[quote author="EquityMind" date=1212218736][quote author="no_vaseline" date=1212139328]I've been in this spot (sort of) before.



Outside of the governments interest, what's it really worth? $300 an acre?</blockquote>


Some of the comparables I've been able to find are three years old at the most recent and range from 16,500 (industrial) to $17,500 (waterfront) per acre. Their appraiser came to that figure by factoring in a 1 or 2 percent per month gain over time.</blockquote>


Quick, somebody, anybody, get me the phone # of that appraiser....
 
[quote author="no_vaseline" date=1212230404]Sounds like a premium over what it's really worth if you could find somebody to sell it to. How many acres total is this piece?</blockquote>


Around 10 acres.
 
Pay the couple of hundred bucks to have your own appraisal done. Also, if you are running a current business on that land, and that business will be negatively impacted by the loss of some or all of the land, then that would need to be figured in as well. There are some lawyers who specialize in eminent domain. I would find one and see what he / she has to say.
 
So some closure to this story....even though US Gov was offering around $22K an acre, I negotiated and got them to increase their offer by $50K or roughly a tad more more than $28K per acre....



Happy camper here.
 
Homeland security. My a$$.

Unless you know illegal traffic is running across your land.. I'd call this a loss of freedom.



How much land have they already bought?



Boarders work both ways. The bad guys are kept out, but you are also "kept" in.
 
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