Analysis

Analysis is the systematic examination of property and market data used to develop and support a conclusion about value. In an appraisal, analysis goes beyond collecting facts by evaluating the information, identifying relevant patterns and differences and explaining how they affect the value conclusion.

An assignment may involve several types of analysis. Market analysis examines supply, demand and pricing trends in a defined area. Highest and best use analysis considers whether a property's potential use is physically possible, legally permissible, financially feasible and maximally productive. Comparable sales analysis evaluates recent sales and accounts for relevant differences between the comparable properties and the subject.

Lenders and other users of an appraisal rely on this reasoning, not just the final value. Well-supported analysis helps an appraisal withstand review and demonstrates how the evidence supports the appraiser's conclusions.