What is a Retrospective Appraisal?
Most appraisals are prepared with a current “as of” date. In some cases, it is necessary to develop an appraisal as of a date from the past. Retrospective Appraisals is an opinion of value as of a specific date in the past. Retrospective appraisals are also known as Historical Appraisals. A Retrospective appraisal value can be needed for property tax appeals, estate or inheritance tax matters, condemnation/eminent domain proceedings, divorce settlements, natural disasters or suits to recover damages. These type of appraisals could be for commercial or residential properties.
For estate purposes, the typical need for a retrospective appraisal arises when someone dies and a date of death valuation is required, or when someone receives a gift of property. Typically, this is necessary for the heirs to provide to the IRS.
What is the Definition of a Retrospective Appraisal?
“A value opinion effective as of a specified historical date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”
Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010).
What Appraisers Do Retrospective Appraisals?
A professional real estate appraiser is one who is licensed by a state agency after meeting rigorous education, experience and testing requirements. There are basically two different certification levels in North Carolina an appraiser can hold (and it's similar in other states - check your state Appraisal Board for the more information). A Residential License allows a Residential Appraiser to value only small, residential properties such as a single-family home, a condominium unit or a 2-4 unit residential property. A General Certification allows a Commercial Appraiser to value all residential property types as well as all income producing properties such as apartments with 5 or more units, commercial properties such as office, industrial, retail or raw land.
Tony Green, NC Certified General Appraiser
Tony is one of the owners of Green Haven Realty, and he is also a Certified General Appraiser (NC License # A8096). He provides appraisal services in the Triad area including Greensboro, Winston-Salem, Kernersville, High Point, Clemmons, Lewisville, and beyond. Tony is an experienced appraiser who can handle your retrospective appraisal needs. Call/text him at 336.701.2891 to discuss any potential assignment.