Property Valuation
In Wyoming, 'effective age' of a property differs from 'actual age' because:
AThey are always the same
BEffective age reflects the apparent condition and utility of the property, while actual age is the number of years since construction✓ Correct
CEffective age is calculated from the date of purchase, not construction
DEffective age only applies to commercial properties
Explanation
Effective age is the age indicated by the property's condition, maintenance, and utility rather than its chronological age. A well-maintained 30-year-old Wyoming home may have an effective age of 20 years, while a poorly maintained 15-year-old home may have an effective age of 25 years.
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Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
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