Property Valuation
In Montana, 'functional utility' of a residential property in the sales comparison approach relates to:
AThe efficiency of the property's heating system
BThe degree to which the property's layout, design, and features meet current buyer expectations and standards✓ Correct
CThe utility connections (water, sewer, gas) available at the site
DThe property's income-producing potential
Explanation
Functional utility refers to how well the property's design, layout, room sizes, and features meet current market standards and buyer expectations. Properties with poor functional utility (awkward floor plans, inadequate bedrooms/baths) may warrant negative adjustments.
Related Montana Property Valuation Questions
- The cost approach to appraisal is most useful for:
- An appraiser's value opinion represents:
- The 'gross rent multiplier' (GRM) method for valuing a Montana rental property involves:
- Montana property taxes are calculated by multiplying the taxable (assessed) value by:
- When performing a comparative market analysis (CMA), an agent adjusts comparable sale prices to account for differences from the subject property. If a comparable has a feature the subject lacks, the agent 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:
- The cost approach is MOST reliable for valuing:
- In Montana ranch appraisals, which unit of comparison is commonly used for large agricultural properties?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →