An appraiser is asked to provide a retrospective value opinion for a property as of a date one year ago. The current market conditions are significantly different from those a year ago. The appraiser should:
Correct Answer
D) Research and use market data from the effective date of the appraisal
A retrospective appraisal estimates value as of a past effective date, so the analysis should reflect property and market conditions relevant to that date. Research historical market evidence rather than average current and past prices or simply time-adjust today’s market. Later information may sometimes corroborate historical facts, but should not introduce hindsight into the historical value opinion.
Why This Is the Correct Answer
A retrospective opinion must reflect market and property conditions at the historical effective date. Data from that period is central; later evidence may sometimes inform what was knowable at that date, but current conditions must not be substituted for past conditions.
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The subject has a detached garage and the comparable sales have attached garages. Market analysis shows an attached garage contributes $5,000 more than a detached garage for these properties. How should this difference be adjusted in the comparables?
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Which of the following is NOT typically a function of state appraiser regulatory agencies?