Property Valuation
A Montana appraiser must disclose all hypothetical conditions used in an appraisal because:
AThey increase the property's value automatically
BThey are contrary to known facts and must be disclosed so users understand the basis of the value conclusion✓ Correct
CHypothetical conditions are required in all appraisals
DThey make the appraisal more legally defensible
Explanation
A hypothetical condition is something assumed to be true for purposes of the appraisal that is contrary to actual known facts. USPAP requires appraisers to clearly identify and disclose all hypothetical conditions so users understand that the value conclusion is based on those assumed conditions.
Related Montana Property Valuation Questions
- The 'principle of anticipation' in Montana real estate appraisal means that value is:
- 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:
- The capitalization rate (cap rate) is used in the income approach to value and is calculated as:
- In Montana, when an appraiser uses 'external comparable sales' from outside the immediate market area, they must:
- In Montana, the 'land residual technique' in appraisal is used to:
- Montana property taxes are calculated by multiplying the taxable (assessed) value by:
- In the Billings, Montana real estate market, an appraiser using the sales comparison approach would primarily:
- When appraising a property using the sales comparison approach, an appraiser should use comparables that:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →