What is defined as a reasonable belief by an appraiser about something uncertain?

The concept of an extraordinary assumption is a critical part of the appraisal process, particularly in situations where the appraiser must make a judgment based on incomplete or uncertain information. An extraordinary assumption is a specific type of assumption made when a particular condition is assumed to be true but is not necessarily supported by factual evidence. It is reasonable for an appraiser to rely on this assumption as long as it is stated clearly, and its potential impact on the appraisal results is understood.

In the context of appraisal, these assumptions are vital because they can lead to conclusions about value based on factors that cannot be verified at the time of the analysis. For instance, if an appraiser assumes that a property will be developed in a particular way that has not yet been confirmed, they must disclose this assumption in their report. This keeps the appraisal process transparent and allows users of the appraisal to understand the basis for the conclusions drawn.

The other options do not accurately capture the definition of a reasonable belief by an appraiser about something uncertain. Hypothetical conditions refer to scenarios that may not exist but can be used for analysis when identifying value under certain scenarios. General assumption is too vague and lacks specificity regarding the conditions of uncertainty in appraisal practice. Confirmed presumption does not have a basis