How is the valuation factor calculated if the age of the property is unknown?

The calculation of the valuation factor when the age of the property is unknown involves determining the relationship between the current worth of the property and its cost when it was new. This method provides insight into how the property has appreciated or depreciated over time, even in cases where specific age-related data is not available.

By using the acquisition cost divided by the original cost new, you are essentially assessing the investment in the property relative to its value at completion. This technique is beneficial in situations where traditional depreciation calculations might not be applicable due to a lack of age information. It allows appraisers to derive a valuation factor that reflects current market dynamics while considering how much the property originally cost when new.

Other options, while they might involve some form of property valuation, do not specifically address the scenario of unknown age as effectively as this method does. They may rely on different relationships or valuation parameters that do not align with the need to contextualize current values against historical costs without knowing the exact age of the property.