What is an essential factor that appraisers should consider when determining property value?

When determining property value, the condition of surrounding properties is a crucial factor for appraisers. This is because the value of a property is not assessed in isolation; it is influenced by the characteristics and conditions of neighboring properties. An appraiser typically evaluates the overall neighborhood or market area to understand how nearby properties affect market value.

For instance, if surrounding properties are well-maintained and have a higher market value, they can positively impact the subject property's value. Conversely, if nearby properties are in poor condition or declining, this can result in a decrease in value for the subject property due to perceived risk or reduced desirability in the area. This context helps an appraiser provide a more accurate estimate of the market value, aligning with trends and conditions in the local real estate market.