Why must an extraordinary assumption be reasonable rather than merely convenient?
Correct Answer
D) An unsupportable assumption makes the result unreliable
Why this is correct: An extraordinary assumption is a condition taken as fact whose truth is uncertain. If it is unreasonable or unsupportable, the entire appraisal conclusion becomes unreliable because it rests on a flawed foundation. Why the other choices are wrong: An unreasonable assumption does not automatically void the appraiser's license. Reasonableness does not determine the report option (Appraisal Report vs. Restricted Appraisal Report). While clients may reject it, the core issue is the reliability of the value conclusion. Exam tip: An assumption must be plausible and supportable, not just convenient, to maintain credibility.
Why This Is the Correct Answer
Why this is correct: An extraordinary assumption is a condition taken as fact whose truth is uncertain. If it is unreasonable or unsupportable, the entire appraisal conclusion becomes unreliable because it rests on a flawed foundation. Why the other choices are wrong: An unreasonable assumption does not automatically void the appraiser's license. Reasonableness does not determine the report option (Appraisal Report vs. Restricted Appraisal Report). While clients may reject it, the core issue is the reliability of the value conclusion. Exam tip: An assumption must be plausible and supportable, not just convenient, to maintain credibility.
More reconciliation Questions
An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?
Reconciliation of the approaches to value is best described as which activity?
Significant appraisal assistance from a person who does not sign the report must be treated how?
In appraising a hotel as a going concern, what must be allocated?
What does it mean to say an approach is not applicable to an assignment?
Which of the following is a written report option named in the current edition of USPAP?
What distinguishes qualitative from quantitative analysis in the sales comparison approach?
Why should the reconciliation address the quantity of evidence as well as its quality?
An appraisal report includes an addendum explaining the adjustment derivation. How does this affect compliance?
An extraordinary assumption proves false after the report is delivered. What follows?
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