Property Valuation
A building has an effective age of 15 years and an economic life of 50 years. What is the depreciation rate using the age-life method?
A15%
B25%
C30%✓ Correct
D35%
Explanation
Depreciation rate = Effective Age / Economic Life = 15 / 50 = 0.30 = 30%. Appraisers in North Carolina use standardized methods to estimate property value for lending and sales.. The correct answer is 30%.
Related North Carolina Property Valuation Questions
- The Uniform Standards of Professional Appraisal Practice (USPAP) is issued by:
- When an appraiser in NC notes that a home has an 'addition' that was built without permits, this is most relevant to which form of depreciation?
- Net operating income (NOI) is calculated as:
- The 'absorption rate' in a NC real estate market refers to:
- The 'gross income multiplier' (GIM) using annual income for an NC commercial property is calculated as:
- The principle of 'progression' in real estate appraisal states that:
- A NC appraiser's use of 'comparables from the subject's immediate competitive market area' refers to:
- In NC, an appraiser who is pressured by a lender to 'hit' a predetermined value should:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →