Property Valuation

In a West Virginia neighborhood undergoing revitalization, the principle of change would lead an appraiser to:

AUse only historic sales for comparables
BConsider current market trends and the direction of value change✓ Correct
CAssume values will remain constant for the next 5 years
DApply the same cap rate as declining neighborhoods

Explanation

The principle of change recognizes that real estate values are constantly changing due to economic, social, and physical forces. An appraiser must consider current market trends and the direction of the neighborhood's change (improving, stable, or declining) in forming a value opinion.

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