Property Valuation
The 'principle of anticipation' in Montana real estate appraisal means that value is:
ABased entirely on past sales prices
BBased on the present worth of the future benefits of ownership—anticipated future income or use✓ Correct
CDetermined by the current replacement cost only
DAnticipating future zoning changes in the area
Explanation
The principle of anticipation holds that value is created by the expectation of future benefits. Property values reflect buyers' anticipation of future income, use, and potential appreciation—not just historical data.
Related Montana Property Valuation Questions
- In Montana, when an appraiser concludes a property's value is $325,000 'as-is' but $380,000 'subject to completion of planned renovation,' the difference reflects:
- An appraiser's reconciliation process involves:
- In Montana, 'functional utility' of a residential property in the sales comparison approach relates to:
- In the income approach to valuing a Missoula apartment complex, the gross rent multiplier (GRM) is calculated by:
- A Montana appraiser who uses paired sales analysis is trying to:
- In Montana, the 'direct capitalization method' of the income approach differs from the 'discounted cash flow' (DCF) method in that:
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- A Montana property's assessed value for property tax purposes is determined by the:
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