Property Valuation
In Montana, the 'land residual technique' in appraisal is used to:
AEstimate the value of the improvements only
BEstimate the value of land when the value of improvements is known, by capitalizing the income attributable to the land✓ Correct
CEstimate agricultural land value based on crop yields only
DCalculate property taxes on vacant land
Explanation
The land residual technique is an income approach method used to estimate land value when improvement value is known. The income attributable to improvements is subtracted from total NOI; the remainder (land residual) is capitalized to estimate land value.
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