What does the term "predominant value" refer to in appraisals?

The term "predominant value" in appraisals refers to the most common sales price for properties within a specific neighborhood. This measure reflects the typical market conditions and assists appraisers in evaluating property value by identifying what most buyers are willing to pay in that area. This concept helps in understanding local market trends and provides a benchmark for appraisers when determining the value of a subject property.

When determining the predominant value, appraisers typically analyze a range of sales prices for comparable properties, but the focus is specifically on identifying which value appears most often within the data set. This approach is useful for ensuring that the appraisal aligns with the realities of the local market, rather than solely relying on outliers or atypical sales prices that could skew the perception of value.

By concentrating on the most common price point, appraisers can provide a more accurate and reliable assessment that reflects buyer behavior and market dynamics, which ultimately assists lenders and buyers in making informed real estate decisions.