What information must be included in an appraisal report?

The requirement to include the market analysis of similar properties in an appraisal report stems from the need for a thorough and objective evaluation of the property being appraised. This analysis provides context for the appraised value by comparing the subject property to recently sold properties that are similar in terms of characteristics, location, and market conditions. This comparative data supports the appraiser's conclusions and findings, ensuring that the appraisal is grounded in relevant market trends.

Including a market analysis contributes to the credibility and validity of the appraisal, as it demonstrates the appraiser's adherence to established valuation techniques, making it an essential component of any comprehensive appraisal report. This data helps lenders, buyers, and sellers understand the property's worth in the current market, which is crucial for informed decision-making.