What does the term "social change" refer to in the context of appraisal practice?

In the context of appraisal practice, "social change" refers to the evolution of community standards and practices that affect appraisals. This concept is significant because it recognizes that real estate values are influenced by broader societal trends, including shifts in demographics, lifestyle preferences, cultural norms, and community expectations.

As these social dynamics evolve, they can lead to changes in how properties are valued. For example, increased demand for environmentally friendly housing could affect property values as buyers prioritize sustainable features. Similarly, shifts in population density or migration patterns can alter neighborhood desirability and, consequently, property values.

Thus, recognizing social change is crucial for appraisers, as they must consider these factors when evaluating properties to ensure their appraisals reflect current market conditions and societal expectations. Understanding these influences helps appraisers provide credible opinions of value that align with the evolving landscape of real estate.