When an appraiser relies upon information from others, the appraiser must use a(n) _____________regarding the information provided by other experts used in the appraisal report.

When an appraiser relies upon information from others, the appraiser must use a(n) _____________regarding the information provided by other experts used in the appraisal report.

• A. Extraordinary assumption
• B. Assumption
• C. Hypothesis
• D. Disclaimer

Answer: (A)

When an appraiser relies on information provided by other experts, the analysis rests on a changeable assumption that the information is accurate for purposes of the report. This is documented as an extraordinary assumption. It communicates that the appraisal is based on a specific fact supplied by others, and if that fact turns out to be false or incomplete, the value conclusion could be different. The report should clearly state this assumption so users understand the basis of the conclusion and the potential impact if the information is not correct. This approach distinguishes itself from ordinary assumptions, which cover routine facts about the property or market that aren’t expected to materially alter the conclusion if later found inaccurate. A hypothesis or a hypothetical condition isn’t the mechanism used here—the former is a guess, and the latter is a scenario presumed false for analysis. A disclaimer serves a different purpose, typically limiting liability rather than framing information from other experts.

When an appraiser relies on information provided by other experts, the analysis rests on a changeable assumption that the information is accurate for purposes of the report. This is documented as an extraordinary assumption. It communicates that the appraisal is based on a specific fact supplied by others, and if that fact turns out to be false or incomplete, the value conclusion could be different. The report should clearly state this assumption so users understand the basis of the conclusion and the potential impact if the information is not correct.

This approach distinguishes itself from ordinary assumptions, which cover routine facts about the property or market that aren’t expected to materially alter the conclusion if later found inaccurate. A hypothesis or a hypothetical condition isn’t the mechanism used here—the former is a guess, and the latter is a scenario presumed false for analysis. A disclaimer serves a different purpose, typically limiting liability rather than framing information from other experts.