Property Valuation
What is 'effective age' in property appraisal?
AThe year the property was built
BThe age indicated by the property's condition and utility, which may differ from its actual chronological age✓ Correct
CThe age of the youngest component of the property
DThe age recorded on the building permit
Explanation
Effective age reflects the property's actual condition and utility relative to other properties of similar age. A well-maintained older home may have a lower effective age than its chronological age; a poorly maintained home may have a higher effective age.
Related California Property Valuation Questions
- Which factor would most likely increase the capitalization rate an investor requires for an income property?
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- External obsolescence (economic obsolescence) differs from other depreciation types because it is:
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- When using the age-life method to estimate accrued depreciation, the depreciation percentage is calculated by dividing effective age by:
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