What does 'market data' refer to in real estate appraisal?

Market data in real estate appraisal specifically refers to information that reflects current sales and rentals of properties. This data is crucial for appraisers as it provides a snapshot of the real estate market at a specific point in time, allowing them to make informed judgments about property values based on actual transactions and rental agreements. Accurate market data aids in finding comparable sales, which are essential for determining the value of a subject property.

This data typically includes details such as sale prices of similar properties, rental rates, and adjustments for differences in features, condition, and location. By analyzing this real-time market information, appraisers can establish a value that is consistent with current market conditions, ensuring that the appraisal reflects what buyers are willing to pay and what sellers are willing to accept.

In contrast, predictions of future market trends do not provide a concrete basis for determining the current value of a property as they are speculative. Information about current construction projects pertains to potential future supply but does not directly influence current property values without sales data. A log of previous appraisals might offer historical context but does not reflect the current market dynamics necessary for determining effective value.