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Showing posts from December, 2025
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Retrospective - Prospective -"As Is" Real estate appraisals that deal with different time frames go by different names. Retrospective value appraisals deal with appraisals as of a previous time such as when someone passes away.  Appraisers must report value as of the "date-of-death" of the decedent.  The comparable sales and rents in the appraisal must be on or before the date-of-death. Prospective value appraisals deal with proposed properties  such as an office building not yet built.  A lender needs to know the "value-upon-completion" which is a future date.  For multi-tenant properties, the value via the Income Approach "as stabilzed" requires an additional future date due to the time needed for lease-up. "As Is" Value  All appraisals must report an "As Is" value.  When a property suffers from deferred maintenance, the estimated "cost-to-cure" must be subracted from the value via the sales comparison approach t...