What is assumed to precede the effective date of the appraisal?

The effective date of an appraisal is a crucial aspect that reflects the specific point in time at which the value estimate applies. The assumption that events and conditions affecting the property precede this effective date is vital for accurate valuation. This is because all market conditions, property characteristics, and other significant factors that could influence value are typically evaluated based on their state before the effective date.

By establishing that the relevant data or conditions exist prior to this date, appraisers can ensure that their assessments are informed by the most relevant historical context. This allows for a more precise and justified valuation, as the appraiser can analyze trends and changes in the market that may impact the value as of the effective date.

Understanding this sequence is key in real estate appraisal practice, as it emphasizes the temporal relationship between the subject property's status and the appraisal itself. The other options do not align with this principle, as they either suggest a misunderstanding about the timing of events in relation to the effective date or introduce variability that could disrupt the foundational tenets of appraising.