Property Valuation
In Montana, 'market value' for appraisal purposes is defined as:
AThe price the owner paid for the property
BThe most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale✓ Correct
CThe assessed value determined by the county
DThe insurance replacement value of the improvements
Explanation
Market value is defined as the most probable price a property would sell for in a competitive open market between a knowledgeable, willing buyer and seller, both acting prudently, with reasonable time to sell, and unaffected by undue pressure.
Related Montana Property Valuation Questions
- The sales comparison approach to value is MOST appropriate for appraising:
- 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:
- Montana property taxes are calculated by multiplying the taxable (assessed) value by:
- A Montana appraiser evaluating a lakefront property on Flathead Lake must give special consideration to which value-influencing factor unique to that property?
- The cost approach to appraisal is most useful for:
- The 'gross rent multiplier' (GRM) method for valuing a Montana rental property involves:
- When appraising a property using the sales comparison approach, an appraiser should use comparables that:
- The cost approach is MOST reliable for valuing:
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