Property Valuation
The 'effective age' of a building, as used in Louisiana appraisals, refers to:
AThe number of years since the building was constructed
BThe age suggested by the building's physical condition and utility, which may differ from its actual chronological age✓ Correct
CThe age used for insurance premium calculation only
DThe remaining economic life of the building
Explanation
Effective age reflects a building's condition and functional utility rather than its actual calendar age. A well-maintained building may have an effective age younger than its actual age; a poorly maintained building may have an effective age greater than its actual age.
Related Louisiana Property Valuation Questions
- Gross income multiplier (GIM) in Louisiana real estate valuation differs from GRM because GIM uses:
- In the income approach, 'potential gross income' differs from 'effective gross income' because:
- The principle of 'contribution' in real estate valuation states that:
- An appraiser uses the income approach to value a New Orleans commercial building. The property produces a net operating income of $60,000 annually. Using a 6% capitalization rate, what is the estimated value?
- In Louisiana, who is authorized to perform a formal real estate appraisal for a federally related transaction?
- A Louisiana duplex generates $2,400 per month in total rent. If the gross rent multiplier (GRM) is 110, what is the estimated value?
- A property is appraised at $280,000. The assessment ratio in the parish is 10%. What is the assessed value?
- In Louisiana appraisal, 'arms-length transaction' means a sale between:
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →