Property Valuation
In New Mexico, the term 'effective age' in appraisal refers to:
AThe calendar year the building was constructed
BThe age implied by the building's physical condition and functional utility, regardless of chronological age✓ Correct
CThe age of the building's plumbing and electrical systems
DThe legal age of the building permit
Explanation
Effective age reflects the apparent age based on condition, maintenance, and renovations — a well-maintained 30-year-old building may have an effective age of 15 years, while a neglected 15-year-old building may have an effective age of 25 years.
Related New Mexico Property Valuation Questions
- In New Mexico, the 'cost to cure' method for functional obsolescence calculates:
- In the cost approach to value, the appraiser estimates:
- In New Mexico, an appraiser who determines that a property's highest and best use is different from its current use will likely:
- Which principle of value states that the value of a property is affected by surrounding properties?
- In New Mexico, which of the following would be considered a 'super-adequate' feature that may contribute to functional obsolescence?
- When appraising a property in New Mexico, 'effective age' refers to:
- A capitalization rate (cap rate) is used to:
- A comparable sale sold for $250,000 and has a feature the subject property lacks. The appraiser adjusts the comparable by -$5,000. This means:
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