When an appraiser receives financial figures, what should they do with these figures?

The correct approach for an appraiser regarding financial figures received is to adjust the figures provided for future occurrences. This step is essential because the appraiser must consider not just historical data but also the potential for changes in revenue, expenses, and market conditions that could affect the property's future financial performance.

Adjusting the figures allows the appraiser to create a more accurate and forward-looking assessment of value. Real estate values are influenced by market trends, economic conditions, and the anticipated future income that the property may generate, rather than being based solely on past performance. This forward-thinking analysis is critical for stakeholders who rely on an accurate appraisal to make informed investment decisions.

While verifying figures before use is important, relying only on past data without considering adjustments for future occurrences may lead to an inaccurate appraisal. Similarly, simply calculating net income or adding depreciation without adjusting for future scenarios could fail to capture the true potential of the investment. Hence, adjusting figures for anticipated future occurrences provides a more comprehensive view of the property's worth.