What is the difference between just compensation and market value?

Just compensation and market value are two concepts related to eminent domain law in New York. Just compensation in the context of eminent domain refers to the amount of compensation the government is required to pay if it takes an individual’s private property for public use. This amount must be reasonable and must be determined by a court. It must be high enough to reflect the true value of the property, but not so high as to be an unjust financial burden on the government. Market value, on the other hand, is the estimated price of a piece of property based on the current real estate market. It is determined by a licensed real estate appraiser and can be used to negotiate the sale of the property. Market value tends to be lower than just compensation because it does not take into account certain factors such as personal attachment to the property or the person’s financial burden from being forced to give up the property. Furthermore, the government must pay just compensation regardless of market value. Thus, just compensation is the amount of compensation the government is obligated to pay for the property whereas market value is used for comparison to determine an appropriate amount of compensation.

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What is the difference between just compensation and market value?

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