Property Valuation

What does 'effective age' mean in an appraisal?

AThe actual chronological age of the building
BThe age indicated by the condition and utility of the structure, which may differ from chronological age✓ Correct
CThe number of years remaining on the building permit
DThe age of the oldest component of the structure

Explanation

Effective age reflects the apparent age of a building based on its condition, maintenance, and updates — not its actual age. A well-maintained older home may have an effective age younger than its actual age.

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