When developing an opinion of market value, what must the appraiser analyze?

In developing an opinion of market value, an appraiser must consider a comprehensive range of data, which primarily includes all sales and other transfers that have occurred within a specified timeframe, typically the last three years. This approach is essential because it allows the appraisal process to reflect the most accurate and relevant market conditions. By analyzing all sales, the appraiser can identify trends, understand pricing dynamics, and evaluate the differences between various properties, which aids in forming a well-supported valuation.

Examining a wide array of data rather than just a narrow subset, such as active listings, ensures that the appraiser has a complete view of the market. This thorough analysis provides context for the current market value by incorporating different property types and price points, which can significantly affect the appraisal outcome. Furthermore, focusing on historical sales data rather than just listings or government records helps to capture actual transaction values rather than just asking prices, leading to a more objective and reliable estimate of value.