An appraiser values a property in a formerly redlined community as though the historical damage did not occur. This value type is described as:

• A. Market value
• B. Competitive restorative value
• C. Liquidation value
• D. Replacement value

Answer: (B)

The key idea is valuing the property as if the historical harm from redlining never happened, focusing on what it would be worth in a neutral, competitive market. This approach is called competitive restorative value. It aims to restore the property’s market standing by removing the lingering effects of past discrimination, so the valuation reflects non-discriminatory conditions. It differs from market value today, which can still reflect the imprint of discrimination; it also isn’t about cost to replace or a forced-sale price. In short, competitive restorative value estimates what the property would be worth if the discriminatory impact were undone, aligning the appraisal with fair housing principles.