Property Valuation
A Pennsylvania appraiser must inform the client if an assignment involves a 'hypothetical condition.' A hypothetical condition is:
AAn assumption about the appraiser's qualifications
BAn assumption contrary to known fact that is necessary for the purpose of the analysis✓ Correct
CA speculative future value estimate
DAn estimate of what the property would sell for in a different market
Explanation
A hypothetical condition is an assumption that is known to be contrary to fact but is assumed for appraisal purposes. For example, appraising a property 'as if' a proposed addition were already complete when it hasn't been built. USPAP requires hypothetical conditions to be disclosed and clearly identified in the appraisal report.
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