Property Valuation
In an appraisal, 'effective age' is different from 'actual age' because effective age reflects:
AThe year the property was originally constructed
BThe property's condition and utility relative to similar new construction✓ Correct
CThe age calculated for property tax purposes
DThe age shown on the building permit
Explanation
Effective age reflects the property's condition and functional utility compared to a new building, which may differ from the actual (chronological) age. A well-maintained 30-year-old building might have an effective age of 15 years; a neglected 10-year-old building might have an effective age of 25 years.
Related Illinois Property Valuation Questions
- The Uniform Standards of Professional Appraisal Practice (USPAP) governs:
- Which of the following properties would typically NOT use the income capitalization approach as the primary appraisal method?
- The 'income approach' to valuation for a residential single-family home used as a rental would typically use which specific method?
- Which of the following would indicate that a neighborhood is in the 'decline' phase of the neighborhood life cycle?
- In real estate, a 'floor area ratio' (FAR) is used in zoning to express:
- A competitive market analysis (CMA) is typically prepared by a:
- In appraising a historic property, which approach would likely be most challenging because the property has unique features not found in comparable sales?
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