Is a hypothetical condition meant to represent the current status of a property?

A hypothetical condition is defined as an assumption made about a property that is contrary to the actual facts. This means that it is not meant to represent the current status of the property but rather to envision a scenario that does not exist in reality. Appraisers may use hypothetical conditions in specific instances to explore potential uses or changes to a property, but these conditions are, by definition, not reflective of the property's actual circumstances at the time of the appraisal.

For instance, an appraiser may analyze the value of a property as if it were fully developed, even if it is currently vacant. This allows for considerations of various scenarios that might influence the property's value without the constraints of its current state. Thus, the essence of a hypothetical condition is its divergence from the actual conditions of the property.