1.2.5. Effective Date. The effective date of value for the assignment is dependent on the intended use, which depends on the legal nature of the acquisition and is further discussed in Section 4.2.1.1. In most direct acquisitions (such as voluntary purchases), the effective date of value will be as near as possible to the date of the acquisition—typically the date of final inspection. In “quick-take” condemnations under the Declaration of Taking Act, the date of value is the earlier of (1) the date the United States files a declaration of taking and deposits estimated compensation with the court, or (2) the date the government enters into possession of the property. In “complaint-only” straight condemnations under the General Condemnation Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of value, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property.

Act in which no declaration of taking is filed, there may be two valuation dates: the first date will likely be the date of final inspection; the second date is when the appraiser is asked to form a new opinion of value (a new appraisal assignment) effective as of the date of trial. In inverse takings, the date of value is the date of taking, typically established by the court. When necessary, the client must provide the appraiser with a legal instruction regarding the appropriate effective date of value and the legal basis for the date to be used in the assignment. For assignments in which the effective date of value is prior to the date of the report, the appraiser should consult USPAP guidance regarding retrospective value opinions.14 The identification of the effective date of value does not preclude consideration of market data after that date. Comparable sales and rentals occurring after the effective date of value may be considered (see Section 4.4.2.4.7). Market data after the effective date of value that confirms market trends identified as of the effective date of value may also be considered.