An assignment calls for an opinion of value as of a date three years in the past. What is this called?
Correct Answer
C) A retrospective value opinion
Why this is correct: A retrospective value opinion has an effective date that is in the past relative to the date of the report. The appraiser must analyze the market and data as they existed or were knowable at that earlier date. Why the other choices are wrong: A prospective value opinion looks to a future date. A hypothetical value opinion involves a condition contrary to known facts on the effective date. An extraordinary value opinion is not a standard appraisal term. Exam tip: For past dates, think 'retrospective'; for future dates, think 'prospective'.
Why This Is the Correct Answer
Why this is correct: A retrospective value opinion has an effective date that is in the past relative to the date of the report. The appraiser must analyze the market and data as they existed or were knowable at that earlier date. Why the other choices are wrong: A prospective value opinion looks to a future date. A hypothetical value opinion involves a condition contrary to known facts on the effective date. An extraordinary value opinion is not a standard appraisal term. Exam tip: For past dates, think 'retrospective'; for future dates, think 'prospective'.
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