Property Valuation
In New York, an 'as-improved' vs. 'as-proposed' appraisal of a development site means:
AThey are the same thing
B'As-improved' values the site with existing improvements; 'as-proposed' estimates the value assuming proposed improvements are completed✓ Correct
C'As-proposed' is always higher than 'as-improved'
DOnly lenders can order 'as-proposed' appraisals
Explanation
An 'as-improved' appraisal values the property with existing improvements in place. An 'as-proposed' (prospective) appraisal estimates the value assuming proposed construction is complete as of a future date, commonly used for construction loan purposes.
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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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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