Property Valuation
The 'effective age' of a building for appraisal purposes refers to:
AThe actual chronological age of the building
BThe age indicated by the building's condition and utility relative to comparable structures✓ Correct
CThe age since the last major renovation
DThe age stated on the building permit
Explanation
Effective age reflects a building's condition and utility — a well-maintained older building may have an effective age less than its chronological age, while a neglected newer building may have a greater effective age.
Related North Carolina Property Valuation Questions
- The principle of 'conformity' in NC real estate value states that:
- A property in Raleigh, NC has a net operating income of $48,000 and the market capitalization rate is 8%. Its estimated value using the income approach is:
- The sales comparison approach to value is most appropriate for:
- In the cost approach, what does accrued depreciation include?
- An appraiser in North Carolina using the income approach would NOT include which of the following in operating expenses?
- An 'appraisal' in NC is defined as:
- A NC property's capitalization rate is determined primarily by:
- Plottage value refers to:
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