What is the difference between market value and actual value?

The difference between market value and actual value in Delaware’s Eminent Domain Law is that market value is determined by what a buyer would pay in a voluntary sale, while actual value is the amount paid by the condemning authority in a court action. Market value is the primary factor considered in the determination of the amount of compensation for the taking of private property in an eminent domain proceeding. Market value is generally determined by an appraisal of the relevant property. The appraiser will look at the current prices that comparable properties have sold for in the vicinity, and then come to a conclusion as to the value of the property in question. The appraiser will also take into consideration unique characteristics of the property, such as its size, location, condition, and age. On the other hand, actual value is determined by a judge or jury after a hearing or trial. During the trial, the condemning authority will submit expert testimony, maps, and other evidence to demonstrate the fair market value of the taken property. The property owner or his or her attorney will then present their own counter-evidence, in an effort to show that the condemnation is not offering a fair price. The judge or jury will evaluate the evidence presented by both sides and make a final determination as to the appropriate price that the condemning authority should pay.

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What is the difference between market value and actual value?

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