Section 1.4.1

1.4.1. Area and Neighborhood Analysis. In developing an area and neighborhood analysis, the appraiser must identify the characteristics of the area or neighborhood that directly influence the subject property. These data (demographic and economic) should include only the information that directly affects the appraised property, together with the appraiser’s conclusions as to significant trends. The use of “boilerplate” or general demographic and economic data is unnecessary and should not be included unless the specific data directly impacts the current market value of the subject property. As discussed in Section 4.6 and Section 1.2.7.3.3, the appraiser must disregard changes in the neighborhood brought about by the government’s project for which the subject property is being acquired. This specific standard regarding government project influence requires a jurisdictional exception to USPAP Standards Rule 1-4(f).