Easement Calculator

Easement Compensation Calculator

Estimated Compensation: $0.00

Value Per Sq Ft: $0.00

Diminution in Value: This represents the estimated loss of use or value to the specific area affected by the easement.

function calculateEasement() { var landValue = parseFloat(document.getElementById('landValue').value); var totalArea = parseFloat(document.getElementById('totalArea').value); var easementArea = parseFloat(document.getElementById('easementArea').value); var impactFactor = parseFloat(document.getElementById('impactFactor').value); var resultDiv = document.getElementById('easementResult'); if (isNaN(landValue) || isNaN(totalArea) || isNaN(easementArea) || isNaN(impactFactor) || totalArea totalArea) { alert("Easement area cannot be larger than the total land size."); return; } // Calculate Value per Square Foot var valuePerSqFt = landValue / totalArea; // Calculate Compensation // Formula: (Area of Easement * Value Per SqFt) * (Impact Factor / 100) var totalEasementValue = easementArea * valuePerSqFt; var finalCompensation = totalEasementValue * (impactFactor / 100); document.getElementById('valPerSqFt').innerText = "$" + valuePerSqFt.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('compAmount').innerText = "$" + finalCompensation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); resultDiv.style.display = 'block'; }

Understanding Easement Valuation and Compensation

An easement is a legal right that allows one party to use a portion of another person's land for a specific purpose. This could range from utility companies running power lines to a neighbor needing a driveway to access their property. When an easement is granted, the landowner (the "servient estate") usually deserves compensation for the loss of full control over that land.

How Easement Compensation is Calculated

There is no single "standard" price for an easement, but professional appraisers generally use the "Before and After" method or the Impact Factor method used in the calculator above. The logic follows three main steps:

• Fair Market Value: Determining the current value of the land per square foot or per acre based on recent sales of similar properties.
• Easement Area: Measuring the exact footprint of the land that will be restricted.
• Impact Factor (Diminution of Value): This is a percentage that reflects how much the easement interferes with the owner's use. A "blanket" easement that covers a whole yard might have a 75% impact factor, while a buried cable in a far corner might only have a 25% impact factor.

Real-World Example

Suppose you own a property worth $400,000 with a total size of 20,000 square feet. A utility company wants a 1,000 square foot easement for a pipeline.

1. Value per Sq Ft: $400,000 / 20,000 = $20.00 per sq ft.
2. Base Area Value: 1,000 sq ft × $20.00 = $20,000.
3. Impact Assessment: If the pipeline prevents you from building a garage on that spot, an appraiser might set the impact factor at 50%.
4. Final Calculation: $20,000 × 0.50 = $10,000.

Common Types of Easements

Type	Common Impact Factor	Description
Utility (Buried)	25% – 40%	Cables, pipes, or sewers that don't block surface use.
Utility (Overhead)	50% – 75%	High-voltage lines that create visual and height restrictions.
Right of Way (Access)	60% – 90%	Permanent road or driveway used by others daily.

Frequently Asked Questions

Does an easement lower my property taxes?
It might. Since an easement can reduce the market value of your property, you can contact your local tax assessor to request a re-valuation of the affected area.

Is easement compensation taxable?
In many jurisdictions, the payment is considered a "recovery of cost basis" rather than income, meaning you only pay taxes if the compensation exceeds the amount you originally paid for that portion of the land. Consult a tax professional for specific advice.

Can I refuse an easement?
If the entity seeking the easement is a private neighbor, you can usually refuse. However, if it is a government body or a utility company with "eminent domain" powers, they may be able to force the easement through legal proceedings, though they must still pay "just compensation."