If an appraiser assumes the condition to be true, and evidence supports that belief, although that fact is not certain, this is an example of:

• A. Hypothetical condition
• B. Extraordinary assumption
• C. Assumed condition
• D. Inferred assumption

Answer: (B)

An extraordinary assumption is a factual premise the appraiser takes to be true for the purposes of the assignment, based on evidence, but not verified as a fact. The crucial point is that the appraiser relies on this belief even though it isn’t proven, and if it later proves false, the appraisal results could be materially affected.

In your scenario, the appraiser treats a condition as true because evidence supports it, even though it isn’t certain. That aligns with an extraordinary assumption: it's supported by evidence but not guaranteed, and the assumption is essential to the analysis.

This differs from a hypothetical condition, which would posit something contrary to actual facts for the sake of analysis, not because the appraiser believes it to be true. It also differs from an assumed condition in that the extraordinary assumption is specifically tied to a potential material impact if proven false, and is supported by evidence, even without certainty.