Property Valuation
In valuing a Montana ranch, an appraiser must consider which unique factors not typically present in urban residential appraisals?
ASchool district quality and walkability scores
BWater rights, grazing rights, mineral rights, timber value, and agricultural income potential✓ Correct
CProximity to shopping centers and entertainment
DHOA fees and condominium restrictions
Explanation
Montana ranch appraisals require analysis of factors beyond the improvements including: water rights (appropriation date and priority), grazing rights (BLM/Forest Service allotments), mineral rights (severed or intact), timber value, carrying capacity for livestock, and agricultural income under the income approach.
Related Montana Property Valuation Questions
- A commercial appraiser in Billings uses the direct capitalization method and determines that a retail strip center has an NOI of $120,000 and comparable cap rates are 7%. What is the indicated value?
- Montana timber land appraisals require the appraiser to consider:
- A property has an effective gross income of $95,000 and operating expenses of $38,000. What is the NOI?
- In Montana, when an appraiser finds that a property's actual rent is below market rent, this may be called a:
- Curable depreciation in the cost approach refers to:
- In Montana, a 'market rent' appraisal for a rental property determines the rent that the property would command:
- In the sales comparison approach, a Montana appraiser finds that the subject property lacks a garage that all comparable sales have. If comparable garages contribute $15,000 to value, the appraiser should make:
- Functional obsolescence in real estate refers to:
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