What is required for comparative sales data to be considered valid for appraisal?

For comparative sales data to be considered valid for appraisal, it is essential that the sales transactions are recent enough to reflect current market conditions. Generally, data that falls within a timeframe of the last 24 months provides a broader and still relevant picture of how property values are shifting, accommodating fluctuations in market dynamics over time. This period allows appraisers to consider varying seasonal trends and economic conditions that might affect property values.

Using comparative sales data from more than 24 months ago may result in outdated valuations that do not accurately reflect the current market environment. The rationale behind this timeframe is that real estate markets can experience significant changes, and more recent data is crucial for delivering an accurate appraisal.

The requirement for the sale data to be recent ensures that the appraisal reflects the most current market trends and conditions, which is critical for determining property value accurately. This understanding helps appraisers make judicious decisions based on the most applicable and relevant sales information.