Which factor can affect property valuation?

Market conditions and comparable sales play a critical role in property valuation. Market conditions refer to the overall economic environment that can influence property prices, such as supply and demand dynamics, interest rates, and the local economy's health. When there is high demand for properties in a particular area, prices are likely to rise, while a surplus of available properties may depress values.

Comparable sales, often referred to as "comps," involve analyzing the sale prices of similar properties in the same vicinity to arrive at an accurate valuation. This method ensures that the valuation of a property reflects realistic market trends and helps assess how much buyers would be willing to pay based on recent transactions.

Both market conditions and comparable sales provide essential context for understanding property values, as they are based on actual sales data and the current real estate environment, making them foundational elements in the appraisal and property management practices in the Coast Guard context and beyond.