What is the difference between market value and fair market value?

The difference between market value and fair market value is a key concept to understand when discussing eminent domain law in Alaska. Market value is defined as the most probable price a property would sell for in the open market, and it is determined by looking at comparable sales of similar properties in the area. Fair market value, on the other hand, takes the same comparable sales into account but also takes into account any special features inherent to the property. These might include a desirable location, special amenities, or even improvements made by the current owner. In terms of eminent domain law in Alaska, the market value could be seen as a baseline while fair market value takes into account additional components. When it comes to the question of how much a given property is worth, the court will consider both the market value, which provides an estimate of what a property would generally be worth, and the fair market value, which accounts for the special features inherent to the property or improvements made by the current owner. Ultimately, a court in Alaska will use both market value and fair market value when determining the amount of compensation for a property taken under eminent domain.

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What is the difference between market value and fair market value?

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