Property Valuation
When appraising a property in New Mexico, 'effective age' refers to:
AThe property's chronological age in years
BThe age the property appears to be based on its condition and maintenance✓ Correct
CThe age of the oldest structural component
DThe number of years remaining on the mortgage
Explanation
Effective age reflects the property's apparent age based on its condition—a well-maintained property may have an effective age younger than its chronological age; a neglected property may appear older.
Related New Mexico Property Valuation Questions
- In appraising a historic Santa Fe adobe home, the appraiser notes that finding true comparables is difficult. This is most likely because:
- When a New Mexico appraiser reconciles the three approaches to value, they:
- Which principle of value states that the value of a property is affected by surrounding properties?
- In the sales comparison approach in New Mexico, which type of sale should be excluded from consideration as a 'comparable'?
- A capitalization rate (cap rate) is used to:
- In New Mexico, an appraiser who values a property at a lower amount than the purchase price is providing:
- In New Mexico, an 'as-is' appraisal values the property:
- In New Mexico, the term 'effective age' in appraisal refers to:
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