Which factor is most likely to decrease a property's appraised value?

Adverse economic conditions in the area are a significant factor that can lead to a decrease in a property's appraised value. Economic downturns often result in lower demand for housing, as potential buyers may have reduced financial capability, leading to less competition in the market. This diminished demand can directly affect property values, as appraisers consider not only the intrinsic qualities of a property but also external factors, including the overall economic environment of the area. When people are uncertain about their financial future, they are less likely to make significant investments, such as purchasing a home, which directly impacts property appraisals.

In contrast, enhanced local amenities and services, improvements in transportation access, and increased interest from buyers typically contribute positively to property values. Properties in areas with better amenities and transportation options are usually seen as more desirable, attracting more potential buyers and often resulting in higher appraisals.