Property Valuation
A Montana appraiser inspecting a residential property notes a 'non-permitted addition.' In the appraisal report, the appraiser should:
AIgnore it since it is physically part of the structure
BDisclose the non-permitted addition and consider its potential effect on value, marketability, and lender requirements✓ Correct
CAdd its full value as if it were permitted
DReport it to the building department immediately
Explanation
Non-permitted additions must be disclosed in the appraisal report. Lenders may not give full credit for unpermitted space. The appraiser must consider whether the addition was built to code, its quality, and the potential liability or cost for the buyer to obtain permits retroactively.
Related Montana Property Valuation Questions
- A Montana property appraiser who is asked to appraise a property by an agent who will only refer future business if the appraiser 'hits the number' should:
- A Montana property's assessed value for property tax purposes is determined by the:
- In Montana, an appraiser is required to follow the Uniform Standards of Professional Appraisal Practice (USPAP), which are:
- When appraising a Bozeman single-family home, an appraiser makes a positive adjustment to a comparable sale because the comparable has a smaller lot than the subject. This is because:
- A Montana appraiser uses a 'capitalization rate' that is higher than that used for a comparable property in a more desirable Bozeman neighborhood. This higher cap rate reflects:
- In Montana, the 'land residual technique' in appraisal is used to:
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- The income approach to value is most commonly used for:
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