Property Valuation
In Montana, a competitive market analysis (CMA) performed by a real estate licensee is:
AAn official appraisal that may be used for mortgage lending
BAn estimate of market value prepared to help sellers price their property, not a licensed appraisal✓ Correct
CRegulated by the same standards as a licensed appraisal
DOnly allowed for commercial properties
Explanation
A CMA is an informal estimate of market value prepared by a real estate licensee to help clients price property. It is not a licensed appraisal and cannot be used for mortgage lending, which requires a state-certified appraiser.
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- In Montana, the 'income residual technique' in appraisal is used to estimate the value of either the land or improvements when only the other component's value is known. Which statement best describes this technique?Property Valuation
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- In Montana, a comparative market analysis (CMA) performed by a real estate agent is NOT the same as:Property Valuation
- In Montana, 'market value' for appraisal purposes is defined as:Property Valuation
- A Montana lender who requires an appraisal before making a mortgage loan does so primarily to:Finance
- A Montana real estate salesperson who is also a licensed mortgage broker must disclose this fact to real estate clients because:Montana License Law
- Montana law requires that all advertising by a real estate licensee must include:Montana License Law
- Montana law requires a real estate licensee to disclose to all parties to a transaction:Montana License Law
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
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