Question:

Can an appraiser prepare a retrospective appraisal, with an effective date of value as of five years ago, if that appraiser wasn’t even an appraiser five years ago?

Response:

Yes. The appraiser must comply with the COMPETENCY RULE at the time the appraiser develops the appraisal, regardless of the effective date of value.  If the appraiser is to develop a retrospective (or prospective) value opinion, the appraiser must be able – at the time he or she is performing the assignment – to deal with the nuances of such an assignment, (e.g., to research data associated with the retrospective or prospective date and to analyze the data in light of market conditions as of that date). It is not necessary for the appraiser to be, or to have been, a competent appraiser as of the effective date of value.

An appraiser could develop a retrospective appraisal with an effective date of value that is prior to the appraiser’s own date of birth. Likewise, an appraiser could develop a prospective appraisal with an effective date of value that occurs after the date of his or her own death. These would be legitimate assignments that could be completed according to USPAP. In such cases the appraiser could not be considered to be a competent appraiser as of those effective dates of value.