What is the difference between market value and actual value?

The difference between market value and actual value in Virginia’s eminent domain law is the amount of money the state will pay the owner of the property taken for public use. Market value is the amount of money the property would be worth on the open market, while actual value is the amount of money the owner would receive for it from the state. Market value is determined by considering the median price of properties similar to the one being taken, what kind of improvements have been made to the property, its location, and other factors. On the other hand, the actual value is determined by the state based on different factors, such as the need of the property for the public trust, its value if taken and used by the government, and the effect of its acquisition on all parties involved. It is important to note that the state almost always pays the owner of the property more than the market value, but they will use the market value as a starting point in setting the actual value. This is to ensure that the owner is still adequately compensated for their loss, while the government does not grossly overpay.

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What is the difference between market value and actual value?

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