Property Valuation
When appraising a property for divorce proceedings or estate purposes in Texas, the appraiser's 'hypothetical condition' or 'extraordinary assumption' must be:
ABased solely on the attorney's instructions
BClearly stated in the appraisal report, with the basis for the assumption disclosed✓ Correct
CHidden from the parties to avoid influencing the outcome
DA certified statement from the court
Explanation
USPAP requires that appraisers clearly state any hypothetical conditions (assumptions contrary to fact, used for analysis) or extraordinary assumptions (assumptions that, if wrong, could alter the opinion) in the appraisal report. The parties and intended users must understand the basis and limitations of the value opinion.
Related Texas Property Valuation Questions
- A property recently sold for $350,000. The buyer paid $5,000 above appraised value due to a competitive bidding situation. For comparable sales purposes, the appraiser would most likely:
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- A Texas buyer makes a low offer on a property because comparable sales are lower than the list price. The seller counters that their property is special and worth more. The appraiser's role is to:
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