When performing a market analysis, which factors should be included?

When performing a market analysis, it is essential to include offers and sales tendencies in the area because they provide concrete data on how properties are currently performing in the market. This involves examining recent sales, pending transactions, expired listings, and the number of active listings. By analyzing these trends, appraisers can better understand market dynamics, pricing strategies, and the overall activity level within the market. This information allows appraisers to establish a basis for determining property values and assessing the competitiveness of a property in its market context.

In contrast, nonspecific interests of buyers do not provide actionable data relevant to property values or market activity. Predicted future demand may offer insight but is speculative and less reliable than current sales data. Owner preferences for lease terms, while relevant to property management, do not directly impact market analysis as they are more tailored to individual situations rather than broad market trends.