That's why both those states are now offering to buy damaged homes from willing sellers at pre-storm values—in order to replace those homes with open land that can serve as buffers for future storms. To determine those pre-storm values, the state is relying on appraisers.
These retrospective appraisals are complex and require great care, but they are extremely important for victims of natural disasters who are looking for a new place to call home. In addition to natural disasters, retrospective appraisals are also used in property tax matters, estate or inheritance tax matters, condemnation proceedings, or suits to recover damages.
To assist with these assignments, the Uniform Standards of Professional Appraisal Practice (USPAP) includes Statement on Appraisal Standards No. 3 (SMT-3) for retrospective appraisals, which can serve as a helpful guide.
Here are four main considerations when conducting a retrospective appraisal:
Although retrospective appraisals are very complex and can depend on an appraiser's judgment, they are often vital tools to help people move their lives forward. Complying with USPAP, and SMT-3 in particular, helps to ensure that retrospective appraisals offer an objective analysis of value