When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP?

• A. Current value only.
• B. Prospective value only.
• C. Both current and prospective values.
• D. Neither current nor prospective values.

Answer: (C)

USPAP allows an appraiser to express value opinions for a property in its present condition and for its condition after proposed improvements. This means you can provide the current value of the property as it exists today, and, separately, a prospective value that reflects what the property would be worth if the proposed improvements were completed, using a with-proposed-improvements approach.

When presenting the prospective value, you must clearly document that the value is contingent on the completion of the improvements, specify the assumed completion date, and outline the costs, conditions, and market factors involved. The value is not guaranteed; it rests on the stated assumptions and plans, which must be disclosed to the client and users.

Providing both values gives a complete picture: the existing market value now and the expected market value after improvements, helping users assess timing, feasibility, and potential return. Expressing only one of these would omit important information about how the improvements could affect value.