Property Valuation
In Montana, 'Automated Valuation Models' (AVMs) such as online home value estimators are:
AAccepted as official appraisals for mortgage lending purposes
BComputer-generated estimates based on algorithms and available data that can be useful as a starting point but are not substitutes for a professional appraisal✓ Correct
CRequired by law to be accurate within 10% of market value
DMore reliable than human appraisals for all property types
Explanation
AVMs provide algorithmically generated value estimates useful for preliminary research but are not substitutes for professional appraisals. They cannot account for interior condition, unique features, or local knowledge that a trained appraiser provides.
Related Montana Property Valuation Questions
- The income approach to value is most commonly used for:
- In Montana, a comparative market analysis (CMA) performed by a real estate agent is NOT the same as:
- An appraiser in Helena, Montana evaluates a mixed-use building (retail below, apartments above). Which appraisal approach best applies?
- In the income approach, effective gross income (EGI) is calculated as:
- In Montana, a 'retroactive appraisal' (appraisal for a past effective date) may be required for:
- In Montana, market value is defined as the most probable price a property would bring in a competitive and open market under all conditions requisite to a fair sale. This assumes:
- When appraising a Billings commercial property, 'gross leasable area' (GLA) refers to:
- In Montana, an appraiser is required to follow the Uniform Standards of Professional Appraisal Practice (USPAP), which are:
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