Property Valuation
What is a 'retrospective review appraisal' and how does it differ from a standard appraisal in Illinois?
AA review of an old appraisal to see if it was accurate
BAn appraisal with a past effective date; the appraiser must apply the conditions, data, and standards that existed as of that historical date✓ Correct
CAn appraisal using historical cost data to estimate current replacement cost
DA comparison of a property's previous appraisals to spot trends
Explanation
A retrospective appraisal has an effective date in the past. The appraiser must analyze market conditions, available data, and values as they existed on that historical date—not current conditions. This requires finding sales that occurred around the effective date and research into market conditions at that time. Common uses include estate tax valuation (value at date of death), divorce property division, and litigation requiring historical value establishment.
Related Illinois Property Valuation Questions
- Which principle of value states that the value of a property is determined by what it would cost to acquire an equally desirable substitute property?
- In the sales comparison approach, what is the process of making dollar adjustments for differences between comparable properties and the subject property?
- An Illinois appraiser is valuing a special-use property like a church. Which approach to value is typically MOST appropriate?
- A gross rent multiplier (GRM) of 120 is applied to a property with monthly rent of $2,500. What is the estimated value?
- The income capitalization approach to value is most commonly used for:
- What is 'external obsolescence' in property valuation?
- What is 'effective gross income' (EGI) in income property analysis?
- When using the sales comparison approach, paired sales analysis involves:
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