Property Valuation
Effective age differs from chronological (actual) age in that effective age reflects:
AThe year the property was first assessed for tax purposes
BThe property's condition and utility relative to other properties of similar age✓ Correct
CThe remaining economic life of the property
DThe age stated on the original building permit
Explanation
Effective age is the appraiser's estimate of age based on condition and utility, not the calendar. A well-maintained 30-year-old home may have an effective age of 15 years; a neglected 20-year-old home may have an effective age of 35.
Related Arkansas Property Valuation Questions
- An appraisal with a retrospective (historical) effective date is used in which context?
- An appraiser uses a value-in-use estimate for which of the following?
- In the income approach, the overall capitalization rate (OAR) is most reliably derived from:
- Functional obsolescence due to 'superadequacy' refers to:
- In Arkansas, appraisers are licensed and regulated by:
- In the sales comparison approach, the appraiser adjusts for 'condition' of a comparable property that has deferred maintenance relative to the subject by:
- Physical deterioration that can be corrected at a cost that is less than the resulting increase in value is called:
- Which of the following is the primary document used by an appraiser for a standard residential appraisal?
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