What is the difference between market value and actual value?

The difference between market value and actual value is an important concept when it comes to eminent domain law in Maryland. Market value, also known as “fair market value,” is the price a willing buyer would pay for the property in a free market. Actual value is the value a court deems for the property after considering the various costs associated with the taking of the property. In Maryland, the court will determine the actual value of the property based on the cost of the property itself and any other expenses the condemner may have incurred while taking the property. In the event that the condemner has made improvements to the property, those will also be considered when calculating the actual value. Ultimately, the court must determine the actual value of the property to ensure that the property owner is fairly compensated for the taking of their property. Thus, the difference between market value and actual value is the difference between the market price of the property in a free market, and the price the court deems for the property based on the various costs associated with the taking of the property.

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What is the difference between market value and actual value?

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