Property Valuation
Effective age differs from actual age in that effective age reflects:
AThe year the building was constructed
BThe apparent age based on condition and maintenance, regardless of actual age✓ Correct
CThe remaining economic life of the property
DThe age of the most recent major renovation
Explanation
Effective age is the apparent age of an improvement based on its condition and maintenance. A well-maintained older home may have a lower effective age than its actual age, while a neglected newer home may have a higher effective age.
Related Arkansas Property Valuation Questions
- Reproduction cost in the cost approach is the cost to build:
- An appraiser is required to be an 'independent, disinterested third party.' This means the appraiser:
- The 'band of investment' method of deriving a capitalization rate considers:
- The 'effective gross income multiplier' (EGIM) is calculated by:
- The USPAP (Uniform Standards of Professional Appraisal Practice) Standards are issued by:
- In the cost approach, land is always valued separately using:
- Operating expenses in the income approach typically include:
- An appraiser reviewing an income property's 'rent roll' is examining:
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