Property Valuation
What is the difference between effective age and chronological age in Nevada real estate appraisal?
AThey always mean the same thing
BChronological age is the actual years since construction; effective age reflects the apparent age based on condition and maintenance, which may be less or more than chronological age✓ Correct
CEffective age is used only for commercial appraisals
DChronological age is estimated; effective age is exact
Explanation
A well-maintained Nevada home may have an effective age less than its chronological age (e.g., 30 years old but looks like 15 years old). A neglected home may have a higher effective age. Effective age is used to estimate depreciation in the cost approach.
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