What is the difference between market value and actual value?

The difference between market value and actual value when it comes to eminent domain law in New Jersey is an important one. Market value is defined as the estimated value of a real estate property based on what it could sell for on the open market at the time of the taking. Actual value is defined as the estimated value of a real estate property based on the fair market value accounting for any public improvements, such as streets, water supply, and sewers, that have been added since the property was taken. Market value is typically determined by obtaining the current Real Estate Price Index for the area and comparing it with the original value when the property was taken. It is then adjusted to reflect current values. Actual value is more complex and usually involves expert valuators and appraisers to take into account the public improvements that have been added since the taking. This type of assessment often requires the assistance of an attorney to get a fair hearing in court. Eminent domain law in New Jersey is designed to ensure that property owners are compensated fairly when the government takes their land for public purposes. To do this, it is important to understand the differences between market value and actual value. Market value is based on what the property could sell for on the open market, while actual value accounts for any public improvements that have been added since the taking. Understanding these differences can help ensure that property owners receive the compensation they deserve.

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What is the difference between market value and actual value?

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