Property Valuation
What is a retrospective appraisal versus a prospective appraisal in Nevada?
AA retrospective appraisal values future improvements; prospective values the current state
BA retrospective appraisal has an effective date in the past; a prospective appraisal has a future effective date (used for proposed construction)✓ Correct
CBoth terms mean the same thing
DProspective appraisals are not allowed in Nevada
Explanation
A retrospective appraisal values a property as of a past date (used in estates, litigation, tax disputes). A prospective appraisal estimates value as of a future date, commonly used for proposed Nevada construction projects to support construction lending — this is the as-completed or as-stabilized value.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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