What does the Principle of Change imply?

The Principle of Change highlights that market value is not static; rather, it is influenced by a variety of external factors that can alter the worth of properties over time. This principle acknowledges that elements such as economic conditions, demographic shifts, changes in consumer preferences, legislative changes, and technological advancements can impact property values. Therefore, real estate professionals must continually assess these dynamics to determine accurate market value estimates.

Understanding this principle is crucial as it emphasizes the need for appraisers and evaluators to stay informed on current market trends and external influences, enhancing their ability to provide reliable valuations that reflect the actual market conditions.