An appraiser proposes to assume there are no hidden defects. Which fact would characterize that assumption as extraordinary under the USPAP 2024 definition, rather than justify dismissing it as routine boilerplate?
Correct Answer
D) It concerns uncertain, assignment-specific facts that could alter results
An extraordinary assumption is defined by assignment-specific uncertainty as of the effective date and its potential effect on opinions or conclusions if false. Placement in boilerplate, a client signature or property age does not decide its classification. “No hidden defects” is not automatically a harmless general assumption in every assignment. Required analysis and report disclosure still apply; a known contrary fact raises a different hypothetical-condition issue.
Why This Is the Correct Answer
An extraordinary assumption is defined by assignment-specific uncertainty as of the effective date and its potential effect on opinions or conclusions if false. Placement in boilerplate, a client signature or property age does not decide its classification. “No hidden defects” is not automatically a harmless general assumption in every assignment. Required analysis and report disclosure still apply; a known contrary fact raises a different hypothetical-condition issue.
More USPAP Questions
In a cost approach for an improved property, an appraiser estimates site value by sales comparison, allocation and extraction, then settles on one site-value figure before final reconciliation. How is this step best described?
An extraordinary assumption was reasonably supported, properly used and disclosed in an appraisal report. Later, the assumed information is found to be false. Which conclusion is best supported?
An otherwise applicable valuation approach cannot be developed reliably from the available data. The remaining scope can produce credible assignment results. What should the appraiser do?
May an appraiser use a hypothetical condition in any assignment?
An appraisal has a current effective date and permits an extraordinary assumption if its requirements are met. Which situation involves uncertain information rather than a fact known to be contrary to reality on that date?
Why must a report identify any real property interest that is being excluded from the value opinion?
Which review best helps explain divergent cost, sales-comparison and income indications?
Two value indications are $340,000 and $392,000. What is the difference as a percentage of the lower indication, rounded to one decimal place?
An unauthorized third party requests a lender-client’s report. No due-process or other permitted disclosure exception applies. How should the appraiser respond?
Which considerations provide the soundest basis for reconciling appraisal indications?
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