In an appraisal process, what must be acknowledged if there is an extraordinary assumption made?

In the appraisal process, if an extraordinary assumption is made, it is essential to acknowledge the potential risks involved. Extraordinary assumptions are based on conditions that are presumed to be true but for which there is no verification. Because these assumptions can significantly impact the validity of the appraisal, acknowledging the associated risks helps ensure transparency and informs all parties about the uncertainty surrounding the appraisal results.

This acknowledgment protects the appraiser by clarifying that the appraisal's outcome could change if the assumptions prove to be incorrect. By addressing the potential risks, the appraiser maintains professional integrity and complies with the standards set forth in the National Uniform Standards of Professional Appraisal Practice, which requires practitioners to be clear about the limitations and assumptions inherent in their work.