When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment?

Analyzing prior listings of the subject property is necessary when such analysis is relevant to the current appraisal assignment. This is because understanding the history of a property’s market performance can provide valuable insights into its value, particularly in relation to changes in market conditions, property features, or seller motivation. Prior listings can reveal trends, the property’s previous pricing strategies, and how long it stayed on the market, all of which can inform the appraiser’s evaluation and support a more accurate value conclusion.

This approach aligns with the principles of effective data analysis in appraisal practice, emphasizing the importance of relevance in the information considered. By focusing on relevant past listings, appraisers can ensure their conclusions reflect not just current market conditions, but also how past market behaviors may influence present perceptions of value.