Property Valuation
Effective age of a building differs from actual age because:
AEffective age is always greater than actual age
BEffective age reflects the building's condition and remaining useful life, regardless of chronological age✓ Correct
CEffective age is used only in commercial appraisals
DEffective age equals actual age minus depreciation in years
Explanation
Effective age reflects how old the building 'acts' based on its condition, maintenance, and updates. A well-maintained 40-year-old building may have an effective age of 20 years, while a poorly maintained 20-year-old building may have an effective age of 35 years.
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