Property Valuation
What does 'effective age' mean in the context of property appraisal?
AThe actual number of years since the building was constructed
BThe age indicated by the physical condition and utility of the building, which may differ from actual age✓ Correct
CThe age used for depreciation in the cost approach, always equal to actual age
DThe remaining economic life of the building
Explanation
Effective age reflects the condition of the building rather than its chronological age. A well-maintained 40-year-old building may have an effective age of 25 years; a poorly maintained 20-year-old building may have an effective age of 35 years.
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