Which type of appraisal is permitted by USPAP when appraising proposed improvements?

When appraising proposed improvements, both current and prospective appraisals are permitted under USPAP. A current appraisal assesses the value of the property as it stands at the present time, while a prospective appraisal focuses on the anticipated future value of the property after the improvements have been made.

This dual approach allows appraisers to provide a comprehensive valuation that takes into account both the existing condition of the property and the potential impact of the proposed improvements. By evaluating both scenarios, clients can gain insights into the feasibility and economic viability of the proposed changes, making this flexibility instrumental for various stakeholders, including developers, investors, and financial institutions.

This broader perspective aligns with USPAP’s goal of providing relevant information to support decision-making in the real estate market. Thus, acknowledging both current and prospective values enhances the appraisal's usefulness in contexts where future performance is as significant as present conditions.