Property Valuation
When appraising a historic building in downtown Bozeman, the appraiser must consider:
AOnly the cost to rebuild the structure
BThe income approach only, since all downtown buildings are investment properties
CAll three approaches (sales comparison, cost, and income) and reconcile them to a final value estimate✓ Correct
DOnly the assessed value from the county
Explanation
An appraiser should consider all applicable approaches to value and reconcile them. For a historic building, all three approaches may be relevant, and the appraiser must weigh each based on data availability and reliability.
Related Montana Property Valuation Questions
- Highest and best use in appraisal is defined as the use that is:
- In Montana, a 'retroactive appraisal' (appraisal for a past effective date) may be required for:
- Appreciation in real estate value is most directly influenced by:
- A Montana ranch appraiser identifies that a comparable ranch sold for $1.8 million and included water rights valued at $200,000. When using this comparable for a subject ranch without those water rights, the appraiser should:
- In Montana, the 'land residual technique' in appraisal is used to:
- 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:
- A Montana appraiser must disclose all hypothetical conditions used in an appraisal because:
- Functional obsolescence in real estate refers to:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →