What does the principle of change state regarding market value?

The principle of change highlights that market value is dynamic and influenced by a variety of forces, including economic conditions, market trends, government regulations, and changes in demographic preferences. This means that as these factors evolve, so does the market value of properties.

For example, if a neighborhood experiences an influx of new businesses or improvements in local infrastructure, the desirability of that area may increase, leading to higher market values. Conversely, if there are negative developments, such as an increase in crime or the closure of key amenities, market value may decline. Recognizing these influences is essential for assessors to accurately determine property values.

The other options present a misunderstanding of real estate market dynamics. Market value is not static, nor is it solely dependent on buyer preferences or insulated from external factors. Instead, it is a complex interplay of various elements that can shift over time.