Property Valuation
The income approach to value is most commonly used for:
ASingle-family owner-occupied homes
BIncome-producing investment properties✓ Correct
CVacant land in rural Montana
DSpecial-purpose government buildings
Explanation
The income approach estimates value based on the income a property generates and is most applicable to rental properties, apartment complexes, and other income-producing real estate.
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:
- In Montana, the 'income residual technique' in appraisal is used to estimate the value of either the land or improvements when only the other component's value is known. Which statement best describes this technique?
- In Montana, an 'as-is' appraisal for a property requiring significant repairs values the property:
- In Montana, a buyer's broker price opinion (BPO) differs from a formal appraisal in that a BPO:
- A Montana appraiser evaluating a lakefront property on Flathead Lake must give special consideration to which value-influencing factor unique to that property?
- Effective age in real estate appraisal refers to:
- In a buyer's market in Montana (excess supply relative to demand), an appraiser would typically find that comparable sales prices are:
- In the Billings, Montana real estate market, an appraiser using the sales comparison approach would primarily:
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