Property Valuation
In Montana, when an appraiser finds that a property's actual rent is below market rent, this may be called a:
ABonus value from below-market financing
BRental value loss or 'below-market rent' adjustment, which may reduce the property's investment value compared to comparable fully-at-market properties✓ Correct
CFree rent period that benefits the tenant
DCompliance with rent stabilization ordinances
Explanation
When a property's actual rent is below market (due to long-term leases, favored tenants, or management decisions), the income approach may show a lower value than comparable properties at market rent. The difference between market and actual value is sometimes called 'leased fee vs. fee simple' value difference.
Related Montana Property Valuation Questions
- The gross rent multiplier for a comparable property that sold for $180,000 with a monthly rent of $1,500 is:
- Appreciation in real estate value is most directly influenced by:
- A Montana appraiser inspecting a residential property notes a 'non-permitted addition.' In the appraisal report, the appraiser should:
- In Montana, a 'reconciliation' in an appraisal report is the process by which the appraiser:
- In Montana, 'Automated Valuation Models' (AVMs) such as online home value estimators are:
- Effective age in real estate appraisal refers to:
- In Montana property valuation, 'economic obsolescence' refers to:
- An appraiser in Helena, Montana evaluates a mixed-use building (retail below, apartments above). Which appraisal approach best applies?
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →