When evaluating a property, what is typically prioritized by appraisers over other factors?

When appraisers evaluate a property, the income potential is often prioritized as it directly impacts the property's market value, especially in investment or income-producing scenarios. Appraisers assess how much income a property can generate to determine its worth, particularly for multifamily units, commercial properties, or rental homes. This is because the value of these properties is frequently derived from their ability to produce revenue, making income potential a crucial factor in the appraisal process.

While the condition of the property and the neighborhood's characteristics are important, they typically play a supporting role in the overall valuation. The buyer's financial profile is not typically considered in appraisals as an objective measure of a property's value; rather, the appraisal focuses on the property itself and the market factors affecting it. Hence, the emphasis on income potential reflects the appraisal industry's focus on financial return, which is a vital aspect of real estate investment.