Real estate appraisals

Retrospective Appraisal Definition

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A retrospective appraisal is a type of property valuation that estimates the value of a property at a specific point in the past, rather than at the current date. This type of appraisal is often needed when assessing the historical value of a property for purposes such as tax reporting, legal disputes, estate settlements, or determining the value of a property at the time of conversion from a personal residence to an income-producing property.

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In a retrospective appraisal, the appraiser uses market data, comparable sales, and other relevant information that was available at the retrospective date to provide an accurate valuation for that specific period.

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Retrospective Appraisal Report

 

A retrospective appraisal report is a formal document that provides an estimate of a property's value as of a specific date in the past. It is prepared by a designated appraiser using historical data and market conditions that were relevant at the time being evaluated. This type of report is typically requested in scenarios where a past valuation is necessary for legal, financial, or tax-related purposes.

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Components of a Retrospective Appraisal Report:

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1. Effective Date of Value: The date in the past for which the appraisal is being conducted.

2. Purpose of the Appraisal: A clear statement explaining why the retrospective appraisal is being conducted, such as for legal disputes, tax assessments, or conversions from residential to income properties.

3. Property Description: A detailed description of the subject property, including location, size, type, and any relevant features at the time of the valuation date.

4. Market Conditions: An analysis of the real estate market as it existed on the retrospective date, including comparable property sales from that period.

5. Approach to Valuation:

   • Sales Comparison Approach: A comparison with similar properties sold around the retrospective date.

   • Cost Approach: A breakdown of the cost of building the property minus depreciation (if applicable at the retrospective date).

   • Income Approach (if applicable): Based on potential income generation for income properties, using rental data from the retrospective date.

6. Historical Data and Comparables: Specific sales data and market trends from the period in question to support the appraisal conclusion.

7. Valuation Conclusion: The final retrospective value of the property, reflecting what it would have been worth on the effective date based on the appraiser's analysis.

8. Appraiser's Certification: A certification by the appraiser affirming the accuracy and professionalism of the appraisal in accordance with industry standards, such as the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP).

 

Retrospective appraisal reports are often used in tax reassessments, estate planning, divorce settlements, or when converting a residence into an investment property, among other applications.

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At Walson Consulting Inc., we understand the importance of accurate retrospective appraisal reports. Our team consists of highly experienced and designated appraisers from the Appraisal Institute of Canada (AIC), the leading authority in residential appraisals. We are committed to delivering reports that meet the highest standards of the Canadian Uniform Standards of Professional Appraisal Practice (CUSP). Trust our local appraisers to work closely with you to fulfill your appraisal needs with professionalism and expertise.

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