What is the difference between market value and actual value?

The difference between market value and actual value is important when it comes to eminent domain law in Utah. The market value of a property is the estimated price that it could fetch in the open market if it were sold. Essentially, it is what a willing buyer would pay to a willing seller, under normal conditions, for the property being evaluated. Actual value, on the other hand, is a measure of a property’s total worth to the owner. It is the amount needed for the owner to be “made whole”, or made just as well off as if their property had not been taken. This includes not only the fair market value of the property, but also any related losses the owner may have suffered, such as lost business income, relocation costs, and emotional distress. When governments exercise eminent domain, they must pay the property owner the actual value of their property. This value is often greater than the market value, as it includes compensation for any losses the owner has suffered. In Utah, the actual value of a property must be determined by the courts.

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What is the difference between market value and actual value?

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