Property Valuation
In Hawaii, what does 'market area' or 'neighborhood analysis' mean in an appraisal?
AA. Analysis of the appraiser's local marketing area for new clients
BB. Assessment of the physical, economic, governmental, and social forces that shape the neighborhood and affect property values✓ Correct
CC. Mapping the boundaries of properties for sale
DD. Analysis of the listing broker's market share
Explanation
Neighborhood analysis evaluates the forces shaping the subject property's market area—physical (land use, condition), economic (employment, income), governmental (zoning), and social (demographics, trends).
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