Property Valuation
In a North Dakota appraisal, the 'effective age' of a building may differ from its actual age because:
AAppraisers always use actual age
BA well-maintained building may have an effective age less than its actual age; a poorly maintained building may have a greater effective age✓ Correct
CAll buildings have the same effective age
DEffective age only applies to commercial properties
Explanation
Effective age reflects the condition and functionality of a building relative to comparables, not just its calendar age. A 30-year-old home that has been completely renovated may have an effective age of 10 years, while a poorly maintained 10-year-old home might have an effective age of 25 years.
Related North Dakota Property Valuation Questions
- Which of the following North Dakota properties would MOST likely be valued using the cost approach?
- The income approach to value is most appropriate for:
- An appraiser valuing a North Dakota commercial building uses a 'direct capitalization' method. This means:
- Which appraisal approach is most commonly used for residential properties in the Fargo, North Dakota market?
- In North Dakota, the 'effective age' of a building used in the cost approach refers to:
- A North Dakota appraiser noting 'curable physical deterioration' on a property is referring to:
- In North Dakota, which appraiser certification level is required to appraise a non-residential property with a transaction value over $500,000 for federally related transactions?
- An appraiser values a Fargo strip mall. The building's cost new is $1,200,000, physical depreciation is $180,000, functional obsolescence is $60,000, and the land value is $250,000. What is the indicated value by the cost approach?
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