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

Eminent domain law in Washington is the law that allows the government to acquire private property for public projects, such as building a school or improving a road. An important part of the process is determining the fair market value of the property, which is the amount of money the government must pay to the property owner in exchange for the land. The difference between market value and fair market value is that market value is the amount a buyer and seller would agree on in a real estate transaction without being forced to act. Fair market value, however, is the amount of money a buyer is willing to pay for the property, taking into consideration factors such as the current condition of the property, the recent sales prices of similar properties, local market conditions, and other factors. In certain cases, the government may pay more for the property than the market value due to these additional factors. This is often seen when the property is being taken for public projects and the government must pay for any lost value to the property due to the project. Fair market value is also the amount of compensation the courts will award a property owner if the government takes their property without proper compensation. In summary, the main difference between market value and fair market value is that market value is the amount of money a buyer and seller would agree on in a real estate transaction without being forced to act, while fair market value is the amount of money that the government will pay to the property owner in exchange for the land, factoring in things like condition, location, and other factors.

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

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