What is defined as a study of local market conditions and property values?

The correct choice is defined as a market analysis. A market analysis involves studying the local real estate market to assess various factors such as demand, supply, trends, and property values in a specific area. This process is essential for determining how properties are priced and understanding what may influence their future value. It takes into consideration comparable sales, market conditions, and economic factors impacting real estate transactions in the locality.

A sales comparison approach is a method utilized within the context of property valuation but does not encompass the broader scope of local market conditions as a market analysis does. While a property appraisal can also involve the comparison of recent sales data to determine value, it is often a more formal evaluation by a licensed appraiser focusing primarily on individual properties rather than the broader market conditions. A feasibility study typically assesses the viability of a proposed project or property investment rather than analyzing the existing local market and property values.