Property Valuation
A Mississippi appraisal includes an 'extraordinary assumption.' Under USPAP, an extraordinary assumption is a supposition that:
AIs certain to be true
BIs assumed to be true for the purpose of the analysis, but if found to be false, could materially change the value — and requires clear disclosure✓ Correct
CHas no effect on the value conclusion
DIs required by the client
Explanation
An extraordinary assumption is a specific assumption about uncertain information accepted as fact for appraisal purposes. If the assumption turns out to be false, the value could be different. USPAP requires extraordinary assumptions to be clearly stated, disclosed to the client, and identified in the appraisal report.
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