What term describes the opinion of value an appraiser provides for a proposed new building, assuming the improvements are completed as of the effective appraisal date?

The correct term describing the opinion of value for a proposed new building, assuming the improvements are completed as of the effective appraisal date, is known as a hypothetical condition. In appraisal practice, a hypothetical condition refers to a set of assumptions made for the purpose of the appraisal that may not reflect reality. In this context, the appraiser is assuming that the construction is completed even though it may not yet be built or finished, and valuing the property based on this presumption. This allows the appraiser to provide a value estimate that can inform potential buyers, developers, or financiers about the projected worth of the property once completed. Understanding this concept is crucial for recognizing how appraisers can support decision-making in real estate transactions involving proposed developments.

The other terms like literal value, theoretical estimation, and projected assessment do not accurately capture the essence of valuing a property that is not yet complete based on a specific and defined condition or assumption.