What is a characteristic of a sales data report appraisal?

A sales data report appraisal is primarily characterized by its basis on comprehensive research and data analysis, frequently utilizing Multiple Listing Service (MLS) data as a critical resource. This type of appraisal does not rely heavily on physical inspections or subjective evaluations of the property itself. Instead, it synthesizes existing sales data of comparable properties to arrive at a valuation.

By focusing on recent sales trends and property characteristics gleaned from MLS listings, the sales data report appraisal delivers a factual assessment based on market activity rather than personal impressions or detailed examinations of a specific property. This approach makes it particularly efficient in providing a market-based valuation, especially in cases where time or physical inspection may be constraints.

In contrast, options that suggest physical inspection, such as inspecting the property or utilizing financial projections, are more aligned with different types of appraisals, such as detailed or income-based appraisals, which require firsthand analysis rather than data-driven analysis.