October 21st, 2022

Bozeman Home Appraisals

Consider Getting A Bozeman Home Appraisal

Overview: Determining Your Property’s Value

  • An appraisal/opinion of a property’s value is determined by a licensed Bozeman (Home) Appraiser.
  • Ideally, a property’s appraised value is based on a comparison of similar properties (to yours) sold within a specific time frame.
  • Property value is based on the highest and best use of a specific piece of “real property.”
  • The appraisal value is based on a likely sales price in an open and competitive market.
  • The need to SELL in a specific period of time is not taken into account.
  • Other, special circumstances are not taken into account.
  • LENDERS may use either the appraised value or sales price, whichever is lower, to determine the amount of the mortgage to be offered.
  • This is not a Bozeman home inspection, just an appraisal, which does not determine a property’s true value.

Bozeman Property Valuation

Market Value

In an effort to ensure no one can affect prices, the price at which an asset would trade in a competitive setting, perfectly matching the supply and the demand, is termed a Walrasian Auction, and is used to determine Market Value, usually interchangeable with “Open Market Value” or “Fair Value.”

International Valuation Standards (IVS) define Market Value as the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.


The net present value (NPV) of a cash flow that an asset generates for a specific owner under a specific use. Value-in-use is the value to one particular user, and is usually below the market value of a property.

Investment Value

Investment Value is the value to one particular investor, and is usually higher than the market value of a property.

Insurable Value

The value of real property covered by an insurance policy. Generally, it does not include the site value.

Liquidation Value

This may be analyzed as either a forced liquidation or an orderly liquidation and is a commonly sought standard of value in bankruptcy proceedings. It assumes a seller who is compelled to sell after an exposure period which is less than the market-normal time frame.

Bozeman Property Appraisal

Comparable Market Sales (Comps)

When you sell your home, an Appraiser will use comps (comparable market sales) from similar properties sold within 180 days or more in an effort to determine your property’s value. (If comps are difficult to find, in an effort to discover a “similar” property, an appraiser will widen the search area for a comparable property or increase the period of time after a comparable property has sold.) With today’s declining seller’s market, six-month-old information may be outdated. A property’s appraised value does not always equal its true market value, or what the property will sell for on the open market.

Comparative Market Analysis (CMA)

A real estate agent will give you a comparative market analysis (CMA), which is an informal estimate of market value based on, if possible, comparable sales from the last few months. A Lender will use the appraised value to determine a new mortgage amount. Some lenders require that in case of foreclosure, the property’s value is sufficient enough to cover the mortgage plus their selling costs. Consequently, a sale may possibly fail if a home sells on the Bozeman housing market for more than the appraised value, which often happens in bidding wars over a desirable piece of property.

Article written by Brett Fagan.


Tags: Bozeman home appraisals, Bozeman home appraisers, Bozeman Montana home appraisals, Bozeman Montana real estate appraisers, Bozeman MT home appraisers, Bozeman real estate transactions, Comparable Market Sales, Comparable Market Values, Fair Market Value, Fair Value, home appraisal bozeman mt, Insurable Value, International Valuation Standards, Investment Value, IVS, Liquidation Value, market value, Open Market Value, real estate appraisal bozeman mt, real estate value, Types of appraising, Value In Use, Walrasian Auction

Taunya Fagan

Giving you the advantage