Property Valuation
In North Dakota, the 'effective age' of a building used in the cost approach refers to:
AThe number of years since the building was constructed
BThe age indicated by the building's condition relative to its expected total economic life✓ Correct
CThe age listed on the building permit
DThe age recorded in the county assessor's records
Explanation
Effective age is the age a building appears to be based on its condition, maintenance, and updates—as opposed to its actual chronological age. A well-maintained older building may have a lower effective age than its actual age.
Related North Dakota Property Valuation Questions
- An appraisal is different from a CMA (Comparative Market Analysis) because:
- In North Dakota, 'economic obsolescence' affecting a residential property near an oil field might be caused by:
- The highest and best use of a property is defined as the use that is:
- A North Dakota appraiser considers 'external obsolescence' when the property's value is negatively impacted by:
- The 'principle of regression' in North Dakota real estate appraisal states that:
- Which of the following North Dakota properties would MOST likely be valued using the cost approach?
- In North Dakota, an appraiser who is asked to appraise their own home for refinancing must:
- In the cost approach to value, reproduction cost differs from replacement cost because:
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