Property Valuation

In New York, 'effective age' in property appraisal refers to:

AThe actual number of years since the property was constructed
BThe age the property appears to be based on its condition and maintenance, which may differ from its actual chronological age✓ Correct
CThe age of the property's mechanical systems
DThe number of years remaining in the property's economic life

Explanation

Effective age is the age a property appears to be based on its physical condition, maintenance, and updates — as opposed to its chronological (actual) age. A well-maintained, updated property may have an effective age much younger than its actual age, while a neglected property may have a greater effective age. Appraisers use effective age in the cost approach.

Related New York Property Valuation Questions

Practice More New York Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free New York Quiz →