Both damages and enhancements fall into two general categories:

general (or community); and
special.

The state is not legally obligated to compensate a property owner for any damages that he/she may suffer which are shared in common with the community (see ). Similarly, the state cannot legally claim as an offset any enhancement that may accrue to the property shared in common with the community. Consideration of damages or enhancements in the appraisal process becomes material only in cases in which they relate to and specifically depreciate or appreciate the market value of the property in question.

It is often difficult to determine whether enhancements or benefits are general or special because the courts have used the terms without adequate definition. Generally, it is said that benefits are special which will add anything to the convenience, accessibility, and use of one’s property as distinguished from benefits arising incidentally out of the improvement and enjoyed by the public generally. However, some courts have held that the test of community benefits, as opposed to special benefits, to be that the property would have been benefited anyway regardless of whether the public work was located on it or entirely on neighboring property.

Regardless of criteria used for determining the character of damages or enhancements, it is evident that the controlling factor is whether the same specifically relates to a particular parcel as opposed to the public or community in general. A careful investigation and analysis will be necessary in order for an appraiser to be able to distinguish between special and general damages or enhancements. If there is any doubt in the appraiser’s mind, he/she should request a legal opinion from the ROW Program Office. The appraiser may not agree with the legal opinion. However, in the final analysis, this is a legal rather than an appraisal matter. The appraiser must follow any legal instructions set out in his/her report with the resulting value being “subject to the instructions” rather than an “instructed value.”

Current instructions from the Office of the Attorney General specify that appraised enhancements may be used to offset appraised damages to the remainder parcel, but may not be used to offset the value of the part acquired. However, refer to regarding treatment of re-fencing damages in negotiated settlements.