Property Valuation
In New York, a 'prospective appraisal' estimates the value of a property:
AAs of the current date
BAs of a specific future date (e.g., upon completion of a proposed construction project)✓ Correct
CBased on what the property sold for in the past
DAs of a date in the past
Explanation
A prospective appraisal (as opposed to a retrospective appraisal) estimates a property's value as of a future effective date — most commonly used for proposed construction projects, where the appraiser estimates 'as completed' or 'as stabilized' value. Lenders use prospective appraisals to underwrite construction loans.
Related New York Property Valuation Questions
- The 'principle of regression' in New York real estate appraisal means that:
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- In New York, a 'limiting condition' in an appraisal report is:
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- When a New York appraiser determines that a comparable sale was a 'distressed sale' (foreclosure or short sale), they typically:
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- In New York, a 'retrospective appraisal' would most commonly be commissioned for:
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