Appraised values reflect fair market values
Appraisers research local market values and consider many factors that influence value, such as:
- Physical characteristics such as construction quality, age, structural conditions, desirable features, etc.
- Recent sales of similar properties provide the best evidence of market value
- Location and market conditions of neighborhood
Property value may change for a variety of reasons. Physical transformations, such as additions, renovations or damages, affect value in different ways. Property value may also fluctuate based on external market forces, such as industries, housing shortages or economic recession.