Why the date matters
Real estate markets change. Interest rates, inventory, buyer demand, property condition and neighborhood influences can all differ between two dates. An opinion of value therefore needs a clearly identified effective date.
Current versus retrospective value
A current appraisal analyzes the market relevant to a current effective date. A retrospective appraisal develops a value opinion as of a date in the past—for example, a date of death or another date identified for a legal, tax or financial purpose.
Historical market evidence
A historical assignment requires market evidence appropriate to the historical date. Later sales may sometimes provide context, but they do not automatically substitute for evidence that reflects the market at the effective date.
Historical property condition
If the home has been renovated, damaged, expanded or otherwise changed since the effective date, prior photographs, listings, permits, plans or other reliable information can help establish the property's historical condition.
Frequently asked questions
What is an effective date?
The effective date is the date to which the appraiser's opinion of value applies. It may be the date of inspection, another current date or a prior historical date depending on the assignment.
What is a retrospective appraisal?
A retrospective appraisal has an effective date in the past. The appraiser analyzes market evidence and property characteristics relevant to that historical point in time.
Can today's condition be used for a historical appraisal?
The property may be inspected today, but the assignment may require analysis of what existed as of the historical effective date. Documentation may be needed when the property changed after that date.
Who chooses the effective date?
The client and the professional purpose of the assignment determine the required effective date. Attorneys, accountants, lenders or other advisers may need to identify the date before the appraisal is scoped.
General guides cannot determine the right scope for every assignment. Send the address and explain the decision the appraisal needs to support.
Request an Appraisal