Property Valuation
A Montana appraiser is reconciling the three approaches to value for a Missoula single-family home and gives the most weight to the sales comparison approach because:
AIt is the simplest approach to calculate
BThe sales comparison approach is typically most reliable for owner-occupied residential properties with adequate comparable sales data✓ Correct
CMontana law requires it to be given most weight
DThe cost and income approaches are not permitted for residential appraisals
Explanation
The sales comparison approach is generally given the most weight for owner-occupied single-family residential properties because buyers typically make purchase decisions based on comparisons to similar homes that have recently sold.
Related Montana Property Valuation Questions
- The principle of 'highest and best use' in Montana appraisal means:
- In a buyer's market in Montana (excess supply relative to demand), an appraiser would typically find that comparable sales prices are:
- The 'principle of anticipation' in Montana real estate appraisal means that value is:
- The gross rent multiplier for a comparable property that sold for $180,000 with a monthly rent of $1,500 is:
- The income approach to value is most commonly used for:
- In Montana, a buyer's broker price opinion (BPO) differs from a formal appraisal in that a BPO:
- A Montana ranch appraiser identifies that a comparable ranch sold for $1.8 million and included water rights valued at $200,000. When using this comparable for a subject ranch without those water rights, the appraiser should:
- Effective age in real estate appraisal refers to:
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