What is typically included in a real estate appraisal?

A real estate appraisal primarily focuses on determining the value of a property, and this includes an analysis of comparable property sales. This is crucial because appraisals are grounded in market data, which reflects current real estate trends and values. Comparable sales (or "comps") offer a relevant context for evaluating a subject property’s worth by examining similar properties that have recently sold in the same area. This approach ensures the appraisal is based on tangible market evidence rather than subjective opinions or factors unrelated to market value.

Including an analysis of comparable sales adds credibility to the appraisal, allowing stakeholders, such as buyers, sellers, and lenders, to make informed decisions based on realistic and objective data. The analysis considers factors such as location, size, condition, and features of the properties involved, providing a comprehensive and justified estimation of the property's market value.

In contrast, while opinions on property ownership, evaluations of zoning laws, and marketing strategies may play roles in the broader real estate context, they are not fundamental components of a valuation appraisal itself. These aspects may be relevant to a real estate transaction but do not directly contribute to the value assessment conducted during an appraisal.