What is defined as a condition that is contrary to what is known by the appraiser but is used for analysis?

A hypothetical condition is defined as a condition that is contrary to what is known by the appraiser but is used for analysis. This means the appraiser applies an assumption that something exists or will happen, even if there is no evidence to support it. These situations often arise when appraisers need to analyze potential scenarios, such as estimating the value of a property that has not yet been built or considering a zoning change that has not yet been approved.

Using a hypothetical condition allows the appraiser to assess potential impacts or outcomes based on these assumptions, recognizing that these conditions do not reflect reality. This is crucial for developing concrete analyses and recommendations based on future possibilities or different scenarios.

The other answer options represent different types of concepts within appraisal practice. An extraordinary assumption involves taking a situation that could be true but isn't necessarily verified, while market conditions refer to actual trends and dynamics within the real estate market. Environmental conditions address specific physical or ecological factors affecting a property. Each of these plays a role in the appraisal process, but only a hypothetical condition deals directly with assumptions contrary to known facts used solely for analytical purposes.