Property Valuation
An appraiser in Helena, Montana evaluates a mixed-use building (retail below, apartments above). Which appraisal approach best applies?
AThe cost approach only
BThe income approach only
CAll three approaches with greatest weight likely given to the income approach for this income-producing property✓ Correct
DThe sales comparison approach only
Explanation
For income-producing properties like mixed-use buildings, the income approach typically receives the most weight because buyers primarily evaluate such properties based on income potential. The appraiser considers all three approaches and reconciles them.
Related Montana Property Valuation Questions
- When appraising a property using the sales comparison approach, an appraiser should use comparables that:
- In Montana, the 'Assessor's classification' for residential property (Class 4) affects property taxes because:
- Appreciation in real estate value is most directly influenced by:
- The income approach to value is most commonly used for:
- Gross rent multiplier (GRM) is calculated as:
- Plottage value is created when:
- The 'principle of conformity' in Montana real estate appraisal suggests that property values are maximized when:
- In Montana, a 'reconciliation' in an appraisal report is the process by which the appraiser:
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