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Hypothetical Condition vs Extraordinary Assumption?

Discussion in 'Urgent - Help Needed' started by SPSDOT, Oct 15, 2007.

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  1. SPSDOT

    SPSDOT New Member

    0
    Jul 20, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    Suffering from brainlock.
    What is the difference between a Hypothetical Condition and an Extraordinary Assumption?
     
  2. Joyce Potts

    Joyce Potts Elite Member

    19
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Hypothetical Condition - That which is contrary to what exists but is supposed for the purpose of analysis.

    HC assume conditions contrary to known facts about physical, legal or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of the data used in an analysis.

    Extraordinary Assumption - An assumption directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions.

    EA presume as fact otherwise uncertain information about physical, legal or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of the data used in an analysis.
     
  3. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    "Got USPAP?"
     
  4. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    321
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Joyce must have stayed at a Holiday Inn Express last night.
     
  5. Joyce Potts

    Joyce Potts Elite Member

    19
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Please, please you give me way too much credit.

    I often use these definitions explicitly in my reports in my endless attempt to make sure I don't render anything misleading and to limit or reduce each and every aspect of liability. So far, it's worked, but tomorrow is another day.
     
  6. CANative

    CANative Elite Member

    265
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    What about when we have to make a hypothetical assumption about an extraordinary condition?
     
  7. SPSDOT

    SPSDOT New Member

    0
    Jul 20, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    Thank you Joyce.

    Succinct and to the point. I shall print and frame your reply.

    Steve.
     
  8. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
  9. Richard Carlsen

    Richard Carlsen Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Michigan
    Philosophical question:

    Can one make an Extraordinary Assumption on something where there is no way to prove or disprove the validity of the assumption?

    Since an Extraordinary Assumption is, "An assumption directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions", and forgetting the part about "specific assignment", in general, can one make any such assumption if there is no kown physical or scientific way to prove or disprove what has been assumed?


    Ummmmmmmmm
     
  10. Joyce Potts

    Joyce Potts Elite Member

    19
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    That's what often makes them hypothetical assumptions or extraordinary conditions. I've often invoked this logic when reading many posts on this very Forum.
     
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