Bozeman Home Appraisals

Bozeman Home Appraisals

Bozeman and SW Montana Real Estate Appraisal: Determining Home and Property Values

  • Opinion of the estimated value of Bozeman homes, land or other properties is formed by a licensed Bozeman Home Appraiser.
  • A Property’s appraisal value is based on a comparison of similar properties sold within a specific time-period.
  • Based on the highest and best use of real property.
  • The appraisal value is based on a likely sales price in an open and competitive market.
  • The need to SELL rapidly is not taken into account.
  • Other, special circumstances are not taken into account.
  • LENDERS may use either the appraised value or sale price, whichever is lower, to determine the amount of the mortgage to be offered.
  • This is not a Bozeman home inspection and does not determine true value.

Types of Bozeman Home and Property “Value”

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.

Types of Bozeman Home and Real Estate Appraising

Comparable Market Sales (Comps)

When you sell your home, an Appraiser will use comps (comparable market sales) of local properties sold within the last six months or so to value your home. With today’s declining seller’s market, six-month-old information may be old history. Appraised value does not always equal the true market value, or what the home will sell for on the open market.

Comparative Market Analysis (CMA)

A Realtor will give you a comparative market analysis – CMA – an informal estimate of market value based on 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 stated property value is ample enough to cover the mortgage amount plus their selling costs. Consequently, a sale may possibly fail if a home sells on the open market for more than the appraised value, which often happens in bidding wars over a desirable piece of property.


All information contained herein is derived from sources deemed reliable, however, is not guaranteed by Christie’s International Real Estate, Managing Broker, Agents or Sellers. Offering is subject to error, omissions, prior sales, price change or withdrawal without notice and approval of purchase by Seller. We urge independent verification of each and every item submitted, to the satisfaction of any prospective purchaser. 2015 – 2017 ©Copyright Taunya Fagan Montana Real Estate. All rights reserved. An independently owned and operated member of Christie’s International Real Estate. Equal Housing Opportunity.