What must accompany an extraordinary assumption in an appraisal assignment?

Study for the National Uniform Standards of Professional Appraisal Practice Test. Use multiple choice questions and flashcards to prepare effectively. Each question provides explanations and hints. Be ready for your exam success!

In an appraisal assignment, an extraordinary assumption is a presumption made about a property or market condition that is contrary to known facts but is necessary for the appraisal to proceed. For the appraiser to be able to produce credible results, it is crucial that any extraordinary assumptions are grounded in a sound rationale and contributed significantly to the conclusion drawn in the appraisal.

This means that the appraiser must consider whether the extraordinary assumption is valid and whether the resulting value estimate would be considered reasonable under that assumption. If the assumption leads to credible results, the appraisal can provide a compliant and reliable value conclusion. Failure to ensure the extraordinary assumption is genuinely credible could undermine the integrity of the appraisal and lead to misinformation.

While documentation, peer review, and communication to the client are all important aspects of the appraisal process, the core issue at hand is the requirement for extraordinary assumptions to support the generation of credible results. Therefore, while all the other actions play a role in maintaining good practice, the primary focus is on the necessity of the extraordinary assumption to yield credible results in the appraisal.

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