Define retrospective1/2/2023 ![]() Reasons for a retrospective appraisal include date of gift, tax assessment, death, estate settlement, divorce, partner dispute, deficiency judgments, or condemnation proceedings. In situations, where the client is in need of understanding what the value of their property was, as of a prior date, a retrospective appraisal is performed. USPAP, (pronounced as “YOOS-pap”) is published and maintained by the Appraisal Standards Board (ASB) of the Appraisal Foundation, a non-governmental entity charged by Congress with promulgating appraisal standards. The report date of the appraisal is when the appraisal was completed, and it may not have any relationship to the effective date of the appraisal (for lending purposes these dates are usually the same). The effective date of the appraisal valuation indicates the perspective from which the appraiser is examining the market, which could be any date in the past, present, or future. ![]() In reporting the results of a real estate appraisal, an appraiser must “state the effective date and the report date” per Standard 2(a)(vi). #Define retrospective manualTo comply with regulations, real estate appraisers must comply with “ Uniform Standards of Professional Appraisal Practice” (USPAP), which is the nationwide appraisal guideline manual developed by The Appraisal Foundation, which is typically updated in two-year cycles. That is good because the “ scope of work” (SOW) for an appraisal is to be as specific as possible so there is no misunderstanding the purpose of an appraisal.Īppraisals are highly regulated with rules (standards), guidelines, and advisory opinions (suggested good practice, but not an official rule). There are a lot of variables in an appraisal. On top of all of that, a property can be appraised to reflect the value for a different point in time. Single residential properties are appraised differently depending on the purpose of the appraisal, which may be for purchasing the property, or valuing it for a divorce appraisal, or appraising it to remove PMI (private mortgage insurance). Single residential properties are appraised differently than condominiums. There are many different types of purposes of real estate appraisals. This article will also explain why an appraisal may be appraised for a different time, as well as an overview of the reasons and desired outcomes for each of these methods. We will briefly explore retrospective appraisals (past) current appraisals (present) and prospective appraisals (future), as well as specialized appraisals such as forensic and review appraisals. ![]() In this article, we will look into the time aspect of appraising. ![]()
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