Property Valuation
A Fairbanks property's estimated remaining economic life is 35 years. The building is 15 years old with an original economic life of 50 years. The effective age is:
A10 years
B15 years✓ Correct
C20 years
D35 years
Explanation
Effective age = Total economic life − Remaining economic life. 50 − 35 = 15 years. The property's condition and utility suggest it has depreciated as a 15-year-old building would, which matches its chronological age — indicating the building has been maintained appropriately.
Related Alaska Property Valuation Questions
- In Alaska, the 'principle of anticipation' states that value is based on:
- An Alaskan appraiser estimates that a property suffers from $15,000 in physical depreciation, $8,000 in functional obsolescence, and $5,000 in external obsolescence. Total depreciation is:
- A 'drive-by' or exterior-only appraisal in Alaska is formally known as a:
- Depreciation in real estate appraisal refers to:
- A commercial property in Juneau generates $120,000 in NOI annually. The prevailing cap rate for similar properties is 8%. What is the estimated value?
- When appraising a remote Alaska property accessible only by floatplane, an appraiser should:
- The principle of contribution in real estate valuation states that:
- What does a capitalization rate (cap rate) measure in real estate investment analysis?
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →