Property Valuation
When an appraiser in Montana uses 'regression analysis' in the sales comparison approach, they are:
AConfirming that the neighborhood is in the decline phase
BUsing statistical methods to analyze large data sets of sales to identify the value contributions of various property characteristics✓ Correct
CReducing the value of older properties based on age
DApplying a negative adjustment for declining market conditions
Explanation
Statistical regression analysis is an advanced appraisal methodology that uses multiple comparable sales data points to statistically derive value adjustments for various property characteristics, providing more objective and defensible adjustments than paired sales analysis.
Related Montana Property Valuation Questions
- When appraising a property using the sales comparison approach, an appraiser should use comparables that:
- In the sales comparison approach, an appraiser makes a 'net adjustment' that represents:
- In Montana, a comparative market analysis (CMA) performed by a real estate agent is NOT the same as:
- Depreciation in real estate appraisal refers to:
- An appraiser's reconciliation process involves:
- The 'gross rent multiplier' (GRM) method for valuing a Montana rental property involves:
- The principle of substitution states that:
- In Montana, 'plottage value' (assemblage premium) refers to:
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