Property Valuation
In Minnesota, 'effective age' of a building differs from chronological age because:
AEffective age is always lower than chronological age
BEffective age reflects the building's condition and utility relative to similar buildings, regardless of actual age✓ Correct
CEffective age is used only for commercial properties
DEffective age equals the number of years since the last renovation
Explanation
Effective age is an appraiser's estimate of age based on the building's condition, design, and functionality compared to other buildings. A well-maintained older home may have a lower effective age than its chronological age, while a poorly maintained newer building may have a higher effective age. It is used in depreciation calculations.
Related Minnesota Property Valuation Questions
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- In Minnesota, the assessed value for property tax purposes is typically what percentage of estimated market value for residential property?
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