If an appraiser is asked to value a new construction project, what condition would they be using for their valuation?

When valuing a new construction project, the appraiser would typically utilize a hypothetical condition. A hypothetical condition is a situation that is assumed to exist but does not necessarily reflect the actual status of the property. In the case of new construction, the appraiser may need to estimate value based on plans and specifications, considering what the property would be worth once completed, even when the project is not yet built. This condition allows the appraiser to evaluate future potential and possible market responses to the completed project.

In contrast, the other options relate to different scenarios. A specific condition refers to particular, existing facts surrounding a property that directly impact its valuation. Actual condition pertains to the current state of a property as it stands at the time of appraisal. Assumed condition is often used to describe an assumption that can help guide the valuation process but may not represent reality in the same way hypothetical conditions do. Thus, the hypothetical condition is the appropriate choice for an appraiser assessing a property that is under construction.