Property Valuation
What is 'prospective value' in a Delaware appraisal?
AThe appraiser's prospective opinion of future value based on market trends
BA value opinion with an effective date in the future, such as the value upon completion of proposed construction✓ Correct
CThe current market value as seen from the buyer's prospective
DThe prospective value added by planned improvements
Explanation
A prospective value opinion has an effective date in the future — typically the projected completion date of proposed construction or renovation. It is used by lenders for construction loans to estimate the 'as-completed' value.
Related Delaware Property Valuation Questions
- What is 'cash equivalency adjustment' in real estate appraisal?
- What is a 'Uniform Residential Appraisal Report' (URAR) used for in Delaware?
- What is an 'automated valuation model' (AVM) in Delaware?
- What does 'overall rate' (OAR) mean in a Delaware income property appraisal?
- What is 'value in use' versus 'value in exchange' in Delaware real estate?
- What is a 'desk review' versus a 'field review' of a Delaware appraisal?
- What is 'stabilized NOI' in a Delaware income property appraisal?
- What is a 'market study' versus a 'marketability study' in Delaware real estate?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →