Has anybody ever sold easement rights to a power/utility company?
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Has anybody ever sold easement rights to a power/utility company?
Posted by iwyLSUiwy on 12/7 at 12:11 pm
I have a piece of property close to the Louisiana Boardwalk in Bossier. Maybe an acre that a rent house sits on. I guess because of Margarittaville they are having to replace old power lines with new metal ones. They have to move them further from the levee as well so they would need to buy easement rights 40ft wide and would run the legnth of the acre. There would be no pole on the property, just power line running over it a little bit.

I guess the AEP guy has been trying to get in touch with me for a while (all I had gotten was a letter) and he finally came to my house Wednesday. In the letter he made a formal offer of $750. We talked at the house and I got him to $2,000. But after reading the contract I told him I needed to think about it. He he had a pen and checkbook and was ready to cut the check then.

My thing is that even though I will still own that portion of the property, being a small portion I know, they can do whatever they want to it in the future and I can't stop them. Also, if somebody wants to buy it in the future, it's going to take away from the value I would image because it's now a useless portion of the land.

They have purchased the rights to almost all of the land around me and I can tell he needs to get this deal done because he's called twice since Wednesday.

Should I try and get him up more, maybe around $5000? Should I wait it out longer?

I know it's not a lot of money but I don't want to give it away if that's what I would be doing.

Thanks in advance.



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Posted by ThatsAFactJack on 12/7 at 1:22 pm to iwyLSUiwy
It doesn't hurt to pose the concerns to him and ask for $10,000 specifically because the future value of the property is diminished. All he can say is No. Don't sell yourself short. 2000 to them is nothing so I would definitly ask for more.



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Posted by Tigerpaw123 on 12/7 at 1:40 pm to ThatsAFactJack
I would go with something like this

Well you know we were just discussing putting up a flag pole back there, so I am not sure we are ready to sell any rights, besides I have heard a lot of people getting sick and having cancer that live close to power lines and such,, and make him keep calling you, he will become more and more desperate. When you do finally settle on a price, make it specific, IE: what type and how many lines will be going overhead, then in the contract have it limited to those specifically, and if they want to do anything else they have to return to negotiate. Also you can negotiate any improvements to the area, ditches being cleaned out, fences repaired, gates, re sodding, etc. You are in the drivers seat...ask for the world then negotiate



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Posted by schlow mo on 12/7 at 2:12 pm to iwyLSUiwy
Do you know any attorneys? I would consult one, especially to review the contract.

And if you got him from 500 to 2k quickly he really needs that easement. You can milk a good bit out of this.



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Posted by iwyLSUiwy on 12/7 at 2:15 pm to Tigerpaw123
quote:

ThatsAFactJack


It doesn't hurt to pose the concerns to him and ask for $10,000 specifically because the future value of the property is diminished. All he can say is No. Don't sell yourself short. 2000 to them is nothing so I would definitly ask for more.


Kind of what I started thing. He was ready to cut a $2000 check quick so he must have thought he was coming out good.

quote:

Well you know we were just discussing putting up a flag pole back there, so I am not sure we are ready to sell any rights, besides I have heard a lot of people getting sick and having cancer that live close to power lines and such,, and make him keep calling you, he will become more and more desperate. When you do finally settle on a price, make it specific, IE: what type and how many lines will be going overhead, then in the contract have it limited to those specifically, and if they want to do anything else they have to return to negotiate. Also you can negotiate any improvements to the area, ditches being cleaned out, fences repaired, gates, re sodding, etc. You are in the drivers seat...ask for the world then negotiate


Have they really caused cancer? Probably so. Never thought about making sure to limit the number of lines and have to renegotiate the price for any additions added on.

I wonder how long I can string him on. Would the city take over at some point? I'm sure I could get screwed if they did.



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Posted by LSURussian on 12/7 at 2:19 pm to iwyLSUiwy
I'm not qualified to give you advice on your situation but I'd sure like for you to let us know whatever the results are when you finish.


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Posted by Tigerpaw123 on 12/7 at 2:25 pm to iwyLSUiwy
quote:

Have they really caused cancer?


it is one of those things, lots of claims, probably no substance, but could be used in negotiations, when you mention it he will quickly try to belittle the issue, so then ask him to remove from the contract any language that prevents you from going after the power company for any medical issues....again not something I would loose any sleep over but something to put a few more dollars in your pocket



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Posted by Tigerpaw123 on 12/7 at 2:28 pm to iwyLSUiwy
quote:

Never thought about making sure to limit the number of lines and have to renegotiate the price for any additions added on.


limit the number and type of lines ie: electrical not cable or phone, what wattage, what color, anything you can to limit it to what they need now, in the future they will want to add new stuff and that means more money to you....once you sell it you can never get it back



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Posted by iwyLSUiwy on 12/7 at 2:46 pm to Tigerpaw123
You think there would be a certain time limit I could hold out?


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Posted by Tigerpaw123 on 12/7 at 3:02 pm to iwyLSUiwy
quote:

You think there would be a certain time limit I could hold out?
Who knows how big of a hurry they are in, but if everybody else has already signed, I feel that is in your favor, I would really act un interested and always make them contact you

I was told by a real estate agent that after someone makes you a low ball offer, better than counter offering with your listing price, is just not even to respond....really sends a clear message



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Posted by ItNeverRains on 12/7 at 3:27 pm to iwyLSUiwy
Ask him approx how many sq ft of your one acre, 43560 sq ft parcel he intends to use for power lines/easement. Then tell him many renters fear cancer from voltage, and that type of stigmatization may cost you $. Then show him your property records to see how much your assessed value currently is. Whatever that number is, I'd start at 25% that value plus one year minimum rent due to concessions you'll have to make to current or future renters for inconvenience. Should project run over a year, you'll prorate it accordingly.

He won't pull out a check, but he'll know you are serious


This post was edited on 12/7 at 3:29 pm

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Posted by RetiredG8tr on 12/7 at 4:03 pm to ItNeverRains
Remember, the government can take your land and pay you their fair market price.

I would probably try to lease the right-a-way. Remember, the right-a-way also includes new utility lines, etc.

Go for payments instead of an outright sale.....



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Posted by MikeBRLA on 12/7 at 5:53 pm to RetiredG8tr
quote:

Go for payments instead of an outright sale.....


I agree 100%



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Posted by ItNeverRains on 12/8 at 8:01 am to RetiredG8tr
I am we'll aware of that, my point is by OP dropping knowledge to elec company they'll be much more inclined to pay fair market value. Fair market value has a system of checks and balances. And if its for one companies benefit (Margarittiville) as op eluded private contributions can be considered as well

The numbers being equal, I'd rather have lump sum before project starts


This post was edited on 12/8 at 8:07 am

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Posted by CE Tiger on 12/8 at 10:36 am to RetiredG8tr
quote:

Remember, the government can take your land and pay you their fair market price.


this. if you refuse any offer, they will take you to court and get the land they need. evil power companies.



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Posted by TheOcean on 12/8 at 10:55 am to iwyLSUiwy
In FL, the state must provide you with an attorney if the state wants to acquire private property. Is it not the same in LA?


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Posted by iwyLSUiwy on 12/8 at 12:21 pm to TheOcean
It wouldn't be the state acquiring it though right? Just Swepco.


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Posted by LSURussian on 12/8 at 1:33 pm to iwyLSUiwy
quote:

In FL, the state must provide you with an attorney if the state wants to acquire private property.


quote:

It wouldn't be the state acquiring it though right? Just Swepco.


You have to forgive The Ocean. He has proven over the years that he is borderline illiterate.



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Posted by cwill on 12/8 at 2:10 pm to iwyLSUiwy
Get more $$$ and write into the contract the limitations on use you want. If you feel you need help with the contract hire a lawyer.


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Posted by iwyLSUiwy on 12/9 at 8:29 am to LSURussian
This is my first time here, this board is awesome. Threads hang around longer than on the M/TV board.

Y'all have been a lot of help. As soon as I make a decision/work a deal out I'm going to come update.



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