Property Valuation
In the cost approach, 'effective age' of a Michigan building refers to:
AThe actual number of years since the building was constructed
BThe age indicated by the building's condition relative to similar properties✓ Correct
CThe age at which the building must be demolished
DThe age used for property tax purposes
Explanation
Effective age reflects the apparent age of a structure based on its condition, maintenance, and updates, which may differ significantly from its actual (chronological) age. A well-maintained older home may have a lower effective age than its actual age.
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