In an appraisal assignment prepared under the initiative created by Doug Potts and WithAction LLC, the appraiser would include two types of value. They are:

• A. Market value and competitive restorative value
• B. Replacement cost and market value
• C. Cost value and market value
• D. Fair value and investment value

Answer: (A)

The scenario focuses on two kinds of value that an appraiser considers under this initiative: market value and competitive restorative value. Market value is the amount a property should bring in an orderly, arm’s-length sale on the valuation date, reflecting typical buyer and seller behavior in the current market. The competitive restorative value represents the additional worth that would come from restoring or upgrading the property to a competitive, market-ready condition. It accounts for the costs of improvements and the resulting impact on price and attractiveness to buyers, aligning value with what the property could achieve if brought up to neighborhood standards.

This pairing makes sense for an initiative that emphasizes ensuring properties reach a competitive standing in the market while acknowledging the baseline market price. The other options mix value concepts that aren’t the focus of this initiative—replacement cost and market value tie cost-based measures to market price; cost value and market value isn’t a standard paired concept; and fair value and investment value come from different valuation frameworks.