A Prospective Appraisal is an appraisal with an effective date of the appraisal subsequent to the date of the report. A Prospective Appraisal may be required for valuations of property interests related to proposed developments as the basis for value at the end of a cash flow projection and for other reasons. (See SMT-4 of USPAP on Prospective Value Opinions.)
The use of clear and concise language and appropriate terminology in appraisal reports helps to eliminate misleading reports. To avoid confusion, the appraiser must clearly establish the date to which the value opinion applies. In retrospective value opinions, use of a modifier for the term "market value" and past verb tenses increases clarity (e.g., "…the retrospective market value was…" instead of "…the market value is…").