Property Valuation

An appraiser's 'effective age' of a structure may differ from its 'actual age' because:

AA. Effective age is always greater than actual age
BB. Effective age reflects the structure's apparent age based on its condition and maintenance, which may be less than actual age if well-maintained✓ Correct
CC. Actual age is determined by the appraiser; effective age by the county
DD. They always equal each other

Explanation

Effective age is the appraiser's estimate of the structure's age based on its observed condition and utility, not its calendar age. A well-maintained 40-year-old home may have an effective age of 20 years. Conversely, a poorly maintained 20-year-old home may have an effective age of 35 years. Effective age is used to estimate depreciation.

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