Which of the following is NOT a requirement for utilizing an extraordinary assumption?

The reasoning behind the question revolves around the definition and application of extraordinary assumptions in appraisals. An extraordinary assumption is a supposition that is made about a property or an element of an appraisal that is likely to be false, but, if true, would lead to a valid analysis.

For the statement that the assumption must relate to known information to be considered NOT a requirement, it reflects an important understanding of what is not mandated by appraisal standards. While extraordinary assumptions often pertain to information available during the appraisal process, there is no explicit requirement that the assumption must directly relate to known information. Extraordinary assumptions can sometimes involve scenarios or conditions that are not fully known but are considered to potentially be true for the sake of analysis.

This lack of a strict connection to known facts differentiates extraordinary assumptions from standard ones. Approval for these assumptions occurs under specific circumstances where an appraiser believes that using the assumption is necessary to complete the appraisal process effectively. The credibility of the analysis, the appraiser’s reasonable basis for using the assumption, and the specificity to the assignment are all solid requirements. However, linking assumptions strictly to known information is not a prerequisite, making it the correct answer to the question.