Which event would RAISE a building's effective age relative to last year's estimate?
Correct Answer
B) Years of skipped maintenance now visible throughout
Why this is correct: Effective age reflects a building's condition. Visible deferred maintenance indicates physical deterioration, which increases the building's apparent age relative to its actual age. Why the other choices are wrong: "A roof and window replacement" is a renovation that typically lowers effective age. "Repainting in fashionable colors" is a cosmetic update with minimal impact on effective age. "A well-publicized neighborhood historic designation" may affect market value but does not directly change the building's physical condition or utility. Exam tip: Effective age moves opposite to condition: deterioration increases it, renovation decreases it.
Why This Is the Correct Answer
Why this is correct: Effective age reflects a building's condition. Visible deferred maintenance indicates physical deterioration, which increases the building's apparent age relative to its actual age. Why the other choices are wrong: "A roof and window replacement" is a renovation that typically lowers effective age. "Repainting in fashionable colors" is a cosmetic update with minimal impact on effective age. "A well-publicized neighborhood historic designation" may affect market value but does not directly change the building's physical condition or utility. Exam tip: Effective age moves opposite to condition: deterioration increases it, renovation decreases it.
More Cost Approach Questions
In a cost approach for a proposed building, the appropriate cost basis is generally:
A warehouse cost $210,000 to build when the cost index stood at 105. The index is now 210. Its indicated current cost is:
The age-life method expresses depreciation as:
Market extraction of depreciation is limited by the fact that it:
Functional obsolescence caused by a deficiency is measured as curable when:
Curable physical deterioration is measured at cost to cure because:
A 2,050 sq ft dwelling is priced at $178 per square foot with a $34,000 detached garage and $21,500 of site improvements. Cost new is:
A house has three bedrooms sharing one bathroom, and adding a second bath is economically justified. This is:
Direct costs in a construction budget include:
An appraiser writes that a 40-year-old house has an effective age of 10 but describes original wiring, original kitchen and a 25-year-old roof. The report's problem is:
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