In the State of Georgia, diminished value can apply to damage sustained to vehicles in automobile accidents as well as damage to real property as the result of something like a chemical spill. In simple terms, diminished value refers to the perceived loss in value of a vehicle or real property as the result of accidental damage. When something is damaged, understandably it is worth less than it was prior to the damage. This is true even if it is repaired professionally and is functionally the same as it was before. The reduced value can, of course, be problematic when the owner attempts to sell the damaged property.