This is an appeal by the State Highway Department from an award in a land condemnation case. The two questions we are called upon to decide are: (1) is an unaccepted offer to purchase nearby land admissible as evidence of market value of the land involved in the taking; and (2) was the issue of reasonable probability of rezoning properly submitted to the condemnation commission?
There was thus admitted, as evidence of market value of the land taken, an unaccepted offer made by a third party for the purchase of nearby land. 2 This was error, in our judgment, by virtue of the generally prevailing rule, which we adopt, that evidence of an unaccepted offer to buy 3 is not admissible upon the issue of market value in a condemnation case.
That this is the rule established by the great weight of authority is unquestionable. See Annotation,
The cases reflect the following as the prime reasons that have brought about the exclusion of unaccepted offers to buy as evidence of value: (1) Such evidence is too often uncertain, speculative, conducive to fabrication, otherwise unreliable, and dependent upon fortuitous circumstances. E. g., Sharp v. United States,
Upon the basis of such reasoning, the majority view has developed that an unaccepted offer for land amounts to hardly more than the opinion as to value of one person of unproved qualifications, and constitutes a class of evidence much safer rejected than received. We agree, and hold that an unaccepted offer to buy, whether by a third party or the condemning authority, is inadmissible in a condemnation case.
The Owners point to State ex rel. State Highway Department v. Improved Parcel of Land,
The Owners also seek to avoid the force and effect of the rule we here adopt by contending that the contract in the instant
That this error was prejudicial is obvious: the area taken in this partial-taking case was 1.64 acres; the area remaining was 20.61 acres. There were four expert witnesses whose opinions as to the diminishment of value, on the before-and-after basis, ranged from $8,200. to $33,771. The latter figure was established by the broker who testified regarding the offer at $10,000. an acre. The award was $19,-'000. Under these circumstances, we cannot say that the error was harmless1.
Accordingly, the judgment below must be reversed and the cause remanded for new trial.
For guidance at the retrial, we discuss briefly the Department’s second ground of appeal:
At the trial, the issue of reasonable probability of rezoning of the land involved in the taking, from residential to commercial, was submitted to the condemnation commission under an appropriate charge. See Board of Education of Claymont Special School District v. 13 Acres of Land, etc.,
The Owners adduced the testimony of an expert witness who stated that the highest and best use of the property was commercial or industrial; that a non-conforming commercial use of part of the property had been made for some time; that he had much experience, during 30 years as a real estate broker, in making applications to the Zoning Commission for the rezoning of similar properties from residential to commercial; that he did not know of one such application that had ever been disapproved. The witness concluded that, based upon his knowledge of the decisions of the Zoning Commission over the years regarding land such as is involved in the instant case, he had “no doubt at all but what it would be changed” from residential to commercial. Although there was evidence to the contrary, such testimony was sufficient, in our view, to support a finding of reasonable probability of rezoriing, and thus was sufficient to warrant submission of the issue to the commission. The several points made by the Department in this connection constitute argument more properly made to the commission on the issue. There was no error in this respect.
The cause is remanded for further proceedings not inconsistent herewith.
Notes
. We do not reach the hearsay problem which may be involved in such situation. See 7 A.L.R. (2d) 813.
. This is not to imply that an offer to buy by the condemning authority is admissible upon the issue of value. See Wilmington Housing Authority v. Harris,
.There is emphasis upon the fact that an offer to buy, and not an offer to sell, is here under consideration. The latter may give rise to a different rule. See
