Property Valuation
In New York, when a residential appraiser uses the 'age-life method' to estimate depreciation, they are:
AUsing the building's actual age to determine market value
BCalculating depreciation as the ratio of the effective age to the total economic life of the improvement✓ Correct
CAdding the cost of improvements to the land value
DEstimating the cost to rebuild the structure
Explanation
The age-life (straight-line) method estimates total depreciation as Effective Age ÷ Total Economic Life × Reproduction or Replacement Cost. For example, a building with an effective age of 20 and a total life of 50 years would have 40% depreciation applied.
Related New York Property Valuation Questions
- When a New York appraiser determines 'market rent' for a subject property, they are establishing:
- Which factor is NOT one of the four elements of value (DUST)?
- A Westchester County property generates $120,000 in annual net operating income and comparable properties have recently sold at a 6% cap rate. What is the indicated value?
- In a New York appraisal using the cost approach, 'depreciation' refers to:
- In New York, a 'drive-by appraisal' (exterior-only appraisal) is:
- In New York, a 'drive-by' appraisal or 'exterior-only' appraisal is:
- In New York, the 'principle of substitution' underpins which approach to value?
- Which type of depreciation affecting a property near a New York highway (due to traffic noise) is BEST classified as?
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 →