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

When appraising proposed improvements, both current and prospective appraisals are permitted by the Uniform Standards of Professional Appraisal Practice (USPAP). Current appraisals focus on the value of a property as it stands at the present moment, considering existing conditions and comparable data. On the other hand, prospective appraisals evaluate the anticipated value of improvements that have not yet been completed or are proposed for the future.

This flexibility is crucial as it allows appraisers to assess the potential impact of planned developments or renovations, as well as to provide insights into how those changes might affect the property's value over time. By allowing both types of appraisals, USPAP fosters comprehensive evaluations that can inform stakeholders about current market conditions and future possibilities, ultimately leading to more informed decision-making regarding real estate investments and development plans.