A 17 year old building would cost $245,000 to build new today. you estimate the effective age to be 15 years, the remaining economic life is 45 years and the land value to be $65,000. The value by the cost approach 229150.
What is effective age?
- Effective age is the age that reflects the actual remaining useful life of the asset, taking into account the typical life expectancy of the building or its equipment class and its use.
- Effective Age is the age indicated by the condition and usefulness of the structure. statement is true. The formula for the cost approach is:
- 12 year old building in good condition is 6 years old according to appraiser. This is known as the effective age.
- Effective Age is an estimated age based on the usefulness and physical wear and tear of the structure.
- Effective age is a term used by appraisers to state the age of property based on its current condition rather than its actual age.
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