Property Valuation

Effective age differs from actual age in appraisal because:

AThey always equal each other for newer homes
BEffective age reflects the property's condition and utility relative to its actual age✓ Correct
CActual age is used only in the income approach
DEffective age is determined by the county assessor

Explanation

Effective age reflects the condition, maintenance, and modernization of a property. A well-maintained older home may have a younger effective age than its actual (chronological) age, while a poorly maintained newer home may show an older effective age.

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