For example, a hypothetical condition is
established at the beginning of an assignment that the improvements are constructed as of the effective date
(when in fact the site is vacant.) The highest and best use of the property “as if improved” must then be considered.
What is a hypothetical condition in appraisal?
The Uniform Standards of Professional Appraisal Practice (USPAP) defines a hypothetical condition as: “A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.” In …
What is hypothetical condition?
In an appraisal assignment, a hypothetical condition is used
when a property is appraised under a condition that is contrary to what is known by the appraiser to exist on the effective date of the assignment results
.
Is a retrospective appraisal a hypothetical condition?
One key assignment element is the effective date of value, which may be a current date, a retrospective date, or a prospective date. … If your effective value date is a current date, your appraisal will be based on
the hypothetical condition that the improvements exist when, in fact, they do not
.
When would you use an extraordinary assumption?
Extraordinary assumptions can be used only for
situations where information is unknown or uncertain
. For example, if the borrower had handed Jim a copy of the engineer’s report at the time of the appraisal inspection stating the home is not structurally sound, this factor would not be unknown.
What is the two types of conditionals?
| Conditional sentence type When to use | Type 1 A possible situation and the result | Type 2 A hypothetical condition and its possible result | Type 3 An impossible past situation and its result in the past | Mixed Conditionals An impossible past situation and its result in the present |
|---|
What is open condition and hypothetical condition?
What is open condition and hypothetical condition? In an open condition we
have the simple present tense in the if-clause
. In the main clause we have the future tense. Hypothetical Condition: If Richard worked hard, he would learn grammar.
Which cost estimating method is the most detailed and time consuming to develop?
Quantity Survey Method
– This is the most accurate method for estimating cost new, but it is also the most difficult and time-consuming method. The quantity survey method estimates the cost of each individual item involved in the construction of the improvements.
What is considered a complex property?
Properties that may be considered “Complex” could be: When a property differs from: The neighbourhood (this could be due to size/zoning/property rights or location)
Has a different unique architectural style
.
Is historic in age or possibly a new construction home in an area of older construction
.
What is an assignment condition?
USPAP defines Assignment Conditions as, “
Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work
.”
What is retrospective value?
Retrospective Value is generally defined as: “
A value opinion effective as of a specified historical date
. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date.
What is the most common type of value sought by appraisers?
An appraisal is an opinion of value. But not so plain or simple. The most common type of value sought is
market value for lending purposes
. That would be a value that one may expect to sell for if the property were placed for sale and allowed a sufficient exposure to the market.
How do you do a retrospective appraisal?
Contact the real estate appraiser
you select. You will to need to make an appointment to have the retrospective appraisal done. Inform the appraiser that this is retrospective and ask if he is familiar with this type of valuation. Give the reason for the appraisal so the appraiser covers all required locations.
Who is the intended user?
INTENDED USER:
the client and any other party as identified
, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment. The client is always an intended user for an appraisal or appraisal review assignment.
When verifying data should an appraiser encounter conflicting information he or she must?
When verifying data, should an appraiser encounter conflicting information, he or she must:
determine which source is more reliable and give it more credence
.
What is the purpose of Uspap?
USPAP contains standards for all types of appraisal services including real property, personal property, business valuation and mass appraisal. The purpose of USPAP is
to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers
.
