Hypothetical Condition or not

[J Grant]

Still not a hypothetical condition in the USPAP sense of the term.

I nevre cslled it an HC. A hypothetical condition would be in addition to what an appraisal essentially is - I referenced that in prior posts.

An HC is something the appraiser can add to the appraisal and the HC pertains to the property - we make a subject property HC subject ro repairs or adding a pool etc,

The value model is the appraisal and an appraisal is an opinion based on a certain hypothetical (or implicit ) scenario - that a "sale" took place or will take place on X effective date - that is what it says in the market value definition - and most of the time we appraise for MV-

The cost approach is similar - was the subject "built", or replaced or reproduced on X effective appraisal date? No, it was not, there is a hypothetical or implicit assumption it was - which is embedded in the appraisal. Since it is embedded in the appraisal, we do not have to comment on it - but we should understand it,

S

 

[Tom D]

a listing on the grid. that is a hypothetical condition as to the maybe, to be, sale price, no.

 

[J Grant]

a listing on the grid. that is a hypothetical condition as to the maybe, to be, sale price, no.

No, there is nothing that pertins wrt a hypothetical condition about a listing or a sale price of a comp. .

It was about the hypothetical /implicit "sale" ( which is not real, of course, but it is the appraisal valuation event ) of the subject as of the effective date, which is spelled out in the market definition - just atheoretical discussion for its own sake.

 

[andrew81]

MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal.

Yes, it is a hypothetical sale, one that is presumed to have taken place on the effective date.