Comparable same-era buildings have supported effective age 20 years. The subject’s condition and utility are demonstrably worse on otherwise comparable facts. What conclusion is supportable?
Correct Answer
C) It may exceed 20 years; the evidence gives no exact higher age.
Comparable same-era buildings support a 20-year effective age. Because the subject's condition and utility are demonstrably worse on otherwise comparable facts, a higher effective age than those peers can be supported. The facts do not fix an exact higher figure; that requires its own analysis of condition, utility and market evidence. Neither the peers' 20 years nor any lower figure is required for a property in worse condition.
Why This Is the Correct Answer
Option C is correct because effective age reflects condition and utility, so a subject in demonstrably worse condition than peers with a 20-year effective age can support a higher effective age. The facts do not fix an exact higher figure, which would require its own analysis of condition, utility and market evidence.
Why the Other Options Are Wrong
Option A: It must equal 33 years, even without a specified effective date.
Option A says the effective age must equal 33 years. No figure of 33 follows from the facts given; the evidence supports a higher age than 20 but does not fix any exact number.
Option B: It must be 15 years, despite its demonstrably worse condition.
Option B says it must be 15 years despite worse condition. A lower effective age than the peers would suggest better condition, which contradicts the demonstrably worse condition of the subject.
Option D: It must equal 20 years, the same as the comparables.
Option D says it must equal 20 years like the comparables. Because the subject's condition and utility are worse, it need not match the peers, and a higher effective age can be supported.
Worse shape, older acting
A building in worse shape than its peers acts older than them, so its effective age moves up from theirs.
How to use: Use this to decide the direction of an effective age conclusion compared with peers.
Exam Tip
When the facts give a direction but no measurement, prefer the answer that states the direction without inventing an exact figure.
Common Mistakes to Avoid
- -Copying the comparables' effective age without considering the subject's condition
- -Inventing an exact effective age the facts do not support
- -Lowering effective age for a property in worse condition
Concept Deep Dive
Analysis
This question tests reasoning about effective age from comparable buildings. If same-era peers support a 20-year effective age and the subject's condition and utility are demonstrably worse, the subject's effective age can be higher than 20. The facts support a direction but not an exact number.
Background Knowledge
Effective age is the age indicated by condition and utility. Comparable buildings can bracket or anchor an effective age conclusion, but the subject's own condition determines whether it should be higher or lower, and the exact figure needs supporting analysis.
Real-World Application
In a subdivision built at the same time, most homes have been maintained and show an effective age of about 20 years. The subject has original systems and visible deferred maintenance, so the appraiser concludes a higher effective age and documents the condition observations that support it.
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