Property Valuation
In a buyer's market in Montana (excess supply relative to demand), an appraiser would typically find that comparable sales prices are:
ATrending upward consistently
BTrending flat or declining, which affects value conclusions✓ Correct
CUnrelated to market conditions
DExclusively influenced by national economic trends
Explanation
In a buyer's market with excess supply, price competition among sellers tends to push prices flat or downward. Montana appraisers must analyze market trends and condition adjustments in the sales comparison approach to accurately reflect current market dynamics in their value conclusions.
Related Montana Property Valuation Questions
- A commercial appraiser in Billings uses the direct capitalization method and determines that a retail strip center has an NOI of $120,000 and comparable cap rates are 7%. What is the indicated value?
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