USPAP requires appraisers to disclose what about extraordinary assumptions and hypothetical conditions?

The requirement for appraisers to disclose that extraordinary assumptions and hypothetical conditions may affect the assignment results acknowledges the importance of transparency in the appraisal process. This aspect is crucial because such assumptions and conditions can significantly influence the outcome of an appraisal.

Extraordinary assumptions are facts assumed to be true but are not verified; they can alter the value conclusion if proven incorrect. Similarly, hypothetical conditions may exist outside what is reasonable to assume as a basis for the appraisal but are necessary for specific analyses. Disclosing the potential impact of these conditions ensures that users of the appraisal are aware of any limitations and uncertainties surrounding the results, thereby enhancing the overall credibility of the appraisal report.

While definitions and relevance of extraordinary assumptions and hypothetical conditions provide context, and mentioning assumptions made during property inspections could add detail, the primary focus of USPAP is ensuring that users understand any potential effects on the appraisal's conclusions. Therefore, the emphasis is placed on the implications of these assumptions and conditions rather than just defining or detailing them.