What documentation is essential for conducting a market analysis?

Conducting a market analysis requires comprehensive comparative market data because it provides a factual foundation upon which to assess property values. This data typically includes recent sales of similar properties in the area, also referred to as "comps." By analyzing these comparable properties, appraisers can evaluate market trends, set realistic price expectations, and identify the strengths and weaknesses of a specific property relative to the competition.

While a summary of sales contracts can provide some insights into the selling trends, it does not encompass the broad analysis necessary for a full market perspective. Inspection reports are useful for assessing the condition of a specific property but do not offer any comparative context. Client testimonials, although valuable for understanding client experiences, do not contribute to the quantitative data required for market analysis. Thus, comparative market data is essential for informed and accurate appraisals.