Which four forces affect value in property appraisal?

The correct answer identifies the four fundamental forces that influence property value: Physical, Economic, Governmental, and Social.

The Physical force refers to the tangible characteristics of the property and its location, including land topography, the quality of construction, and accessibility to amenities. These physical attributes can heavily impact a property's market value.

Economic forces encompass the broader economic conditions that affect supply and demand, such as local and national economic trends, employment rates, and interest rates. Changes in these economic factors can significantly alter property values in a market.

Governmental forces represent regulations, zoning laws, tax policies, and other governmental actions that can affect property development and valuation. For example, policy changes can enhance or restrict the potential use and profitability of a property.

Social forces relate to demographic trends and societal values, including population growth, lifestyle changes, and community preferences. These factors can influence neighborhood desirability and ultimately affect property values.

By understanding these four forces, an appraiser can provide a more accurate assessment of a property's value based on current and projected market conditions.