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 that is based on comparable sales in good condition.  Retrospective value appraisals must report an "as is" value as of the past effective date.

Daniel Peele, Founder

State Certified General Real Estate Appraiser, RZ 887

407-230-1023

dan@danpeele.com

 www.CFAC99.com


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