What term describes when an appraiser provides a current value opinion based on a proposed new building as if completed as of the effective date of the appraisal?

The term that describes when an appraiser provides a current value opinion based on a proposed new building, as if it were completed as of the effective date of the appraisal, is known as a hypothetical condition.

A hypothetical condition is an assumption that is contrary to known facts for the purpose of conducting an analysis. In the context of appraisals, it allows appraisers to estimate the value of a property that does not yet exist by assuming that the construction has been completed as specified. This approach is particularly useful when valuing properties that are still in the planning phase or under construction, enabling an analysis given specific circumstances that may not necessarily reflect the current state of the property.

This term is often utilized when discussing prospective value under conditions that are not yet realized, distinguishing it from other concepts like extraordinary assumptions or curable conditions, which have different definitions and implications in appraisal practice.