Property Valuation
Effective age in Missouri appraisal is defined as:
AThe actual age of the building
BThe apparent age based on condition and maintenance✓ Correct
CThe age since last renovation
DThe age set by the tax assessor
Explanation
Effective age is the age a building appears to be based on its condition and utility, which may differ from its actual (chronological) age. A well-maintained older building may have a lower effective age than its actual age.
People Also Study
Related Missouri Questions
- A Missouri apartment building has 10 units renting at $850/month. Annual vacancy is 5%. What is the annual effective gross income?Real Estate Math
- A Missouri investor's 10-unit apartment building has average rent of $750/month per unit. Annual effective gross income with 8% vacancy is:Real Estate Math
- An appraisal report in Missouri must conform to standards set by:Property Valuation
- In Missouri appraisal, an adjustment is made to a comparable sale for a feature the subject property lacks. This adjustment is:Property Valuation
- The principle of substitution in Missouri appraisal states that:Property Valuation
- In Missouri, the 'highest and best use' of a property is defined as the:Property Valuation
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Study This Topic
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →