Property Valuation

In the cost approach to appraisal, effective age refers to:

AThe actual age of the building in calendar years
BThe age indicated by the building's condition and utility, which may differ from its actual age✓ Correct
CThe age at which the building must be demolished
DThe age used for property tax assessment purposes

Explanation

Effective age reflects the building's apparent condition and functional utility. A well-maintained older building may have a lower effective age than its chronological age, while a poorly maintained newer building may have a higher effective age.

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