When appraising proposed improvements, what is permitted by USPAP?

In the context of USPAP, when appraising proposed improvements, both current and prospective value opinions are permitted. This flexibility enables appraisers to provide a comprehensive evaluation that reflects the anticipated value of the property both in its current state and after the proposed improvements are made.

Current value opinions assess the value of the property as it stands today, taking into account its existing condition and comparables in the market. On the other hand, prospective value opinions allow the appraiser to forecast how the proposed improvements will affect the property's value in the future, considering market conditions, potential buyer demand, and the economic feasibility of the improvements.

This dual approach is crucial for stakeholders, such as investors or developers, who need accurate assessments to make informed decisions on whether to proceed with construction or renovation projects. Offering both types of value opinions aligns with the goal of USPAP to promote the highest standards of integrity and objectivity in the appraisal profession.