Property Valuation
An appraiser's value opinion represents:
AThe price a desperate seller would accept
BAn estimate of the most probable price a property would sell for in a competitive and open market✓ Correct
CThe highest price a buyer would ever pay
DThe assessed value for tax purposes
Explanation
Market value in appraisal is defined as the most probable price a property would sell for in a competitive, open market under fair sale conditions with buyer and seller both knowledgeable and acting without duress.
Related Montana Property Valuation Questions
- The principle of progression holds that:
- In a buyer's market in Montana (excess supply relative to demand), an appraiser would typically find that comparable sales prices are:
- When a Montana appraiser finds that the subject property has a detached garage while all available comparables have attached garages, the appraiser should:
- 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:
- A Montana appraiser must be state-certified to perform appraisals for federally related transactions. Which level of certification is required for complex residential appraisals over $400,000?
- Which principle of value states that the value of a property is influenced by the values of surrounding properties?
- Curable depreciation in the cost approach refers to:
- In the sales comparison approach, a Montana appraiser makes a downward adjustment to a comparable sale when the comparable has a feature that the subject property lacks. This is because:
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