{"id":209327,"date":"2024-03-05T08:55:43","date_gmt":"2024-03-05T08:55:43","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/"},"modified":"2024-03-05T08:55:43","modified_gmt":"2024-03-05T08:55:43","slug":"what-is-an-extraordinary-assumption-in-an-appraisal","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/","title":{"rendered":"What is an extraordinary assumption in an appraisal?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#What_is_an_extraordinary_assumption_in_an_appraisal\" title=\"What is an extraordinary assumption in an appraisal?\">What is an extraordinary assumption in an appraisal?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#What_are_some_examples_of_extraordinary_assumptions_in_an_appraisal\" title=\"What are some examples of extraordinary assumptions in an appraisal?\">What are some examples of extraordinary assumptions in an appraisal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#How_does_an_appraiser_determine_when_to_make_an_extraordinary_assumption\" title=\"How does an appraiser determine when to make an extraordinary assumption?\">How does an appraiser determine when to make an extraordinary assumption?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#What_are_the_risks_associated_with_using_extraordinary_assumptions_in_an_appraisal\" title=\"What are the risks associated with using extraordinary assumptions in an appraisal?\">What are the risks associated with using extraordinary assumptions in an appraisal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#Are_extraordinary_assumptions_common_in_the_appraisal_industry\" title=\"Are extraordinary assumptions common in the appraisal industry?\">Are extraordinary assumptions common in the appraisal industry?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#Can_an_appraiser_make_multiple_extraordinary_assumptions_in_a_single_appraisal\" title=\"Can an appraiser make multiple extraordinary assumptions in a single appraisal?\">Can an appraiser make multiple extraordinary assumptions in a single appraisal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#How_can_an_appraiser_protect_themselves_when_making_extraordinary_assumptions\" title=\"How can an appraiser protect themselves when making extraordinary assumptions?\">How can an appraiser protect themselves when making extraordinary assumptions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#Can_an_appraiser_be_held_liable_for_using_extraordinary_assumptions\" title=\"Can an appraiser be held liable for using extraordinary assumptions?\">Can an appraiser be held liable for using extraordinary assumptions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#What_is_the_difference_between_an_extraordinary_assumption_and_an_hypothetical_condition_in_an_appraisal\" title=\"What is the difference between an extraordinary assumption and an hypothetical condition in an appraisal?\">What is the difference between an extraordinary assumption and an hypothetical condition in an appraisal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#How_do_lenders_view_extraordinary_assumptions_in_an_appraisal_report\" title=\"How do lenders view extraordinary assumptions in an appraisal report?\">How do lenders view extraordinary assumptions in an appraisal report?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#Can_an_appraiser_refuse_to_make_an_extraordinary_assumption\" title=\"Can an appraiser refuse to make an extraordinary assumption?\">Can an appraiser refuse to make an extraordinary assumption?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#Are_extraordinary_assumptions_typically_disclosed_to_the_client_or_lender\" title=\"Are extraordinary assumptions typically disclosed to the client or lender?\">Are extraordinary assumptions typically disclosed to the client or lender?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#How_can_a_borrower_or_property_owner_verify_the_extraordinary_assumptions_made_in_an_appraisal\" title=\"How can a borrower or property owner verify the extraordinary assumptions made in an appraisal?\">How can a borrower or property owner verify the extraordinary assumptions made in an appraisal?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_an_extraordinary_assumption_in_an_appraisal\"><\/span>What is an extraordinary assumption in an appraisal?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>An extraordinary assumption in an appraisal is a assumption made by the appraiser about a physical, legal, or economic aspect of a property that is crucial to the appraisal process but cannot be proven or verified. This is done when the appraiser lacks the necessary information to confirm the condition or legal status of the property.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_some_examples_of_extraordinary_assumptions_in_an_appraisal\"><\/span>What are some examples of extraordinary assumptions in an appraisal?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>1. Assuming that the property does not have any hidden defects or environmental hazards.<br \/>\n2. Assuming that all necessary permits and approvals for the property have been obtained.<br \/>\n3. Assuming that the property is not in violation of any zoning laws or regulations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_does_an_appraiser_determine_when_to_make_an_extraordinary_assumption\"><\/span>How does an appraiser determine when to make an extraordinary assumption?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An appraiser makes an extraordinary assumption when there is insufficient information available to confirm a critical aspect of the property. This decision is based on the appraiser&#8217;s professional judgment and experience.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_risks_associated_with_using_extraordinary_assumptions_in_an_appraisal\"><\/span>What are the risks associated with using extraordinary assumptions in an appraisal?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>1. The appraisal report may be inaccurate if the extraordinary assumption turns out to be false.<br \/>\n2. The lender or client may question the validity of the appraisal if the extraordinary assumption is not clearly documented and explained.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_extraordinary_assumptions_common_in_the_appraisal_industry\"><\/span>Are extraordinary assumptions common in the appraisal industry?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While extraordinary assumptions are not used frequently in the appraisal process, they are sometimes necessary when essential information about a property is missing or unavailable.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_an_appraiser_make_multiple_extraordinary_assumptions_in_a_single_appraisal\"><\/span>Can an appraiser make multiple extraordinary assumptions in a single appraisal?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, an appraiser may have to make several extraordinary assumptions in a single appraisal if multiple critical aspects of the property cannot be verified.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_can_an_appraiser_protect_themselves_when_making_extraordinary_assumptions\"><\/span>How can an appraiser protect themselves when making extraordinary assumptions?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Appraisers should clearly document all extraordinary assumptions made in the appraisal report and explain the rationale behind each assumption. This helps protect the appraiser in case of any disputes or challenges to the appraisal.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_an_appraiser_be_held_liable_for_using_extraordinary_assumptions\"><\/span>Can an appraiser be held liable for using extraordinary assumptions?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Appraisers can be held liable for using extraordinary assumptions if they are found to be negligent in making these assumptions or if they do not accurately document and explain them in the appraisal report.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_an_extraordinary_assumption_and_an_hypothetical_condition_in_an_appraisal\"><\/span>What is the difference between an extraordinary assumption and an hypothetical condition in an appraisal?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An extraordinary assumption is used when there is a lack of information about a property, while a hypothetical condition is used when the appraiser is asked to consider a condition that is known to be contrary to fact.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_do_lenders_view_extraordinary_assumptions_in_an_appraisal_report\"><\/span>How do lenders view extraordinary assumptions in an appraisal report?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Lenders may be cautious about relying on an appraisal that includes extraordinary assumptions, as they introduce an element of uncertainty into the valuation of the property.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_an_appraiser_refuse_to_make_an_extraordinary_assumption\"><\/span>Can an appraiser refuse to make an extraordinary assumption?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, an appraiser has the right to refuse to make an extraordinary assumption if they believe it will compromise the accuracy and reliability of the appraisal report.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_extraordinary_assumptions_typically_disclosed_to_the_client_or_lender\"><\/span>Are extraordinary assumptions typically disclosed to the client or lender?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, extraordinary assumptions should be clearly disclosed to the client or lender in the appraisal report to ensure transparency and provide a complete picture of the appraisal process.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_can_a_borrower_or_property_owner_verify_the_extraordinary_assumptions_made_in_an_appraisal\"><\/span>How can a borrower or property owner verify the extraordinary assumptions made in an appraisal?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Borrowers or property owners can request a copy of the appraisal report from the lender and review the disclosures made by the appraiser regarding any extraordinary assumptions. They can also consult with the appraiser directly for more information.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is an extraordinary assumption in an appraisal? An extraordinary assumption in an appraisal is a assumption made by the appraiser about a physical, legal, or economic aspect of a property that is crucial to the appraisal process but cannot be proven or verified. This is done when the appraiser lacks the necessary information to &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"What is an extraordinary assumption in an appraisal?\" class=\"read-more button\" href=\"https:\/\/namso-gen.co\/blog\/what-is-an-extraordinary-assumption-in-an-appraisal\/#more-209327\">Read more<span class=\"screen-reader-text\">What is an extraordinary assumption in an appraisal?<\/span><\/a><\/p>\n","protected":false},"author":53,"featured_media":107420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86279],"tags":[],"class_list":["post-209327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is an extraordinary assumption in an appraisal?<\/title>\n<meta name=\"description\" content=\"What is an extraordinary assumption in an appraisal? 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