Property ValuationIntermediateAlaska Exam

An Alaska appraiser is asked to provide a 'retrospective appraisal' as of the date of a fire three years ago. The appraiser must:

AUse current market data to estimate the past value
BUse market data and conditions as they existed at the retrospective effective dateCorrect
CDecline the assignment as retrospective appraisals violate USPAP, as a general rule
DAdjust current value by an inflation factor

Why Use market data and conditions as they existed at the retrospective effective date Is Correct

Answer B: Use market data and conditions as they existed at the retrospective effective date

A retrospective appraisal provides a value opinion as of a past date. The appraiser must use market data, conditions, and knowledge available as of the retrospective effective date — not current data — to provide an accurate historical value.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

Key Property Valuation Terms in This Question

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