Property Valuation
Effective age differs from actual (chronological) age in that effective age:
AIs always greater than actual age
BIs always equal to actual age
CReflects the condition and utility of the property relative to its class✓ Correct
DIs determined solely by the year the building was constructed
Explanation
Effective age reflects the apparent age of a property based on its condition, maintenance, and utility—a well-maintained building may have an effective age younger than its actual age, while a neglected one may be older.
Related Arkansas Property Valuation Questions
- Reconciliation in appraisal refers to:
- An appraiser reviewing an income property's 'rent roll' is examining:
- The 'as-stabilized' value concept in appraisal refers to:
- Reproduction cost in the cost approach is the cost to build:
- Economic life of an improvement refers to:
- Direct capitalization in the income approach converts income into value by:
- When using the sales comparison approach, a 'gross living area' adjustment is made because:
- When an appraiser selects comparable sales, they should prefer comparables that:
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