Property Valuation
An effective age is different from actual age in property valuation because effective age reflects:
AThe date the building permit was issued
BThe property's condition and functional utility relative to similar properties, regardless of chronological age✓ Correct
CThe age of the oldest structural component
DThe calendar year of the appraisal
Explanation
Effective age reflects a building's condition and utility — a well-maintained older home may have an effective age younger than its actual age, while a neglected newer home may have an effective age older than its actual age. Remaining economic life is estimated from effective age.
Related Pennsylvania Property Valuation Questions
- Functional obsolescence in a property refers to:
- When appraising a property using the sales comparison approach, a Pennsylvania appraiser adjusts comparable sales for differences in:
- What is 'highest and best use' analysis and why is it the foundation of real estate valuation in Pennsylvania?
- A Pennsylvania appraiser determines that the 'as-is' value of a property needing a new roof ($15,000 cost) is $200,000. The 'as-repaired' value would be approximately:
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