Property Valuation
A Pennsylvania appraiser who completes an 'as-improved' appraisal for a construction loan must estimate value assuming:
AThe property is currently vacant land only
BThe proposed construction is complete as described in the plans and specifications✓ Correct
CThe market value at a date before construction began
DThe maximum value if the development is fully leased
Explanation
An 'as-improved' or 'as-completed' appraisal estimates the value of the property upon completion of the proposed construction, assuming all work described in the plans and specs is completed. This prospective value opinion forms the basis for construction loan underwriting and guides the loan-to-value analysis.
Related Pennsylvania Property Valuation Questions
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