Which document typically accompanies an appraisal report to provide context about local market conditions?

The Market Conditions Addendum is an important document that often accompanies an appraisal report to provide detailed context regarding local market conditions. This addendum typically includes information on trends in the local real estate market, such as supply and demand dynamics, pricing trends, and other relevant economic indicators that can affect property values. By including this addendum, appraisers can give a comprehensive overview of the environment in which the property exists, allowing stakeholders to understand how current market conditions influence the appraisal.

In contrast, a Title Report mainly focuses on the legal ownership and any liens or encumbrances on a property, without addressing market dynamics. The Property Condition Report assesses the physical state of the property itself, detailing any repairs or conditions that may impact value, but it does not provide insight into the broader market context. Meanwhile, the Sales Comparison Sheet is focused on individual transactions and comparable sales data rather than offering an analysis of the overall market environment. Thus, the Market Conditions Addendum is the document that specifically enhances the appraisal report by contextualizing it within local market conditions.