Property Valuation

In the cost approach, the term 'effective age' refers to:

AThe chronological age of the building
BThe age indicated by the condition and utility of the building✓ Correct
CThe year the building permit was issued
DThe remaining economic life of the building

Explanation

Effective age is the age of the building as indicated by its condition and utility, which may differ from its actual chronological age due to deferred maintenance or renovation.

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