What is the appraised value of a property based on?

The appraised value of a property is primarily based on the appraiser's opinion, which incorporates a thorough analysis of recent comparable sales, also known as "comps." These comps represent similar properties that have recently sold in the same area and under similar conditions. The appraiser evaluates these sales to derive a fair market value for the property in question.

Additionally, the appraiser considers the unique characteristics of the property being evaluated, such as its condition, size, and features, alongside the local real estate market trends. This method ensures that the appraisal reflects an accurate and current assessment of what buyers in the market are willing to pay.

In contrast, factors like the seller's personal expectations or desires are subjective and do not influence the appraised value. The initial purchase price or the general attributes of the property, such as location and age, are also insufficient on their own; they must be contextualized within the evidence provided by recent comparable transactions. Thus, the correct answer focuses on the informed judgment based on market evidence, aligning with standardized appraisal practices.