What is the difference between just compensation and fair market value?

Just compensation and fair market value are related terms but have distinct meanings when it comes to eminent domain law in Virginia. Just compensation refers to the payment that the government must make to an owner when it takes their property for public use. This is also known as ‘condemnation’. The amount of just compensation is determined by the courts, and is meant to make the owner ‘whole’ again by taking into consideration the use and value of the taken property, the effect on the owner’s livelihood, and the effect on the owner’s personal property rights. Fair market value, on the other hand, is the amount of money that a willing buyer would reasonably pay a willing seller for the property in the current market. This value is determined by looking at similar properties in the area and assessing their sale prices. It does not take into account personal property rights or the effect on the owner’s livelihood. To get an accurate fair market value assessment, an experienced appraiser should be consulted. In Virginia, just compensation is usually greater than the fair market value of the property, and it is the amount that the government must pay to the owner. This is meant to ensure that the owner is not financially disadvantaged by the taking of their property.

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What is the difference between just compensation and fair market value?

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