An appraiser notes that a once-stable neighborhood has gained a commuter rail stop, new employers, and a major streetscape upgrade over the last three years. Which principle reminds the appraiser that value is affected because real estate markets are constantly in flux?
Correct Answer
A) Change over time in market conditions
The principle of change recognizes that economic, social, governmental, and environmental forces can alter value over time. New transit, jobs, and public improvements are exactly the kinds of changing conditions appraisers must analyze.
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A fast-growing suburb shows unusually high profits for new apartment construction. Within a year, several developers start similar projects, and asking rents begin to level off. Which principle best explains the new market behavior?
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