What is the difference between market value and actual value?

In New York, eminent domain law is used to seize private property for public use. The two most important concepts to understand in this process are market value and actual value. Market value is the estimated worth of a piece of property based on what it would hypothetically fetch in the open market. It reflects the average price that buyers and sellers agree upon in the absence of special circumstances. Market value is usually determined by a professional appraiser. Actual value, meanwhile, is the true worth of a piece of property including any special circumstances such as the owner’s attachment or sentimental value. It also includes the cost of relocation if the owner has to move as a result of eminent domain, as well as any other special circumstances. When a property is being taken by eminent domain, the owner is usually given the option of taking the market value, or the actual value, whichever is greater. The actual value is determined by a court. It is up to the owner to prove that the property is worth more than the market value that has been determined. In conclusion, market value is a generic estimate of a property’s worth, while actual value is the true worth of the property. In the case of eminent domain, the owner has the right to receive either market value or actual value, whichever is greater.

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What is the difference between market value and actual value?

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