Property ValuationIntermediateDelaware Exam
What does 'effective age' mean in a Delaware appraisal?
AThe actual number of years since the building was constructed
BThe apparent age of the building based on its condition and maintenance, relative to typical buildings of similar ageCorrect
CThe age of the most recent major renovation
DThe age of the oldest component of the building
Why The apparent age of the building based on its condition and maintenance, relative to typical buildings of similar age Is Correct
Answer B: The apparent age of the building based on its condition and maintenance, relative to typical buildings of similar age
Effective age reflects the building's condition and maintenance rather than its chronological age. A well-maintained older building may have a lower effective age than its actual age, while a neglected newer building may have a higher effective age.
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
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