Property Valuation
In Alaska, economic life of a building refers to:
AThe actual physical age of the structure
BThe period during which the building contributes positively to the property's value✓ Correct
CThe time until the building must be demolished by code
DThe depreciation period used for tax purposes
Explanation
Economic life is the period during which the improvement (building) generates a return and adds value to the property. Physical life (how long it lasts physically) is typically longer than economic life.
Related Alaska Property Valuation Questions
- In Alaska, the 'allocation method' of land valuation estimates land value by:
- In Alaska, when two appraisers value the same property and reach different conclusions, the most likely explanation is:
- Under USPAP Standard 1, an appraiser must identify the 'intended use' of an appraisal because:
- An Alaska appraiser is asked to provide a 'retrospective appraisal' as of the date of a fire three years ago. The appraiser must:
- In Alaska, a property's 'insurable value' differs from its 'market value' because insurable value:
- The 'gross living area' (GLA) used in Alaska residential appraisals typically includes:
- An Alaska appraiser who makes a 'negative 5% condition adjustment' to a comparable means:
- An Alaska appraiser determines that comparable sales need a 'market conditions adjustment' of +2% per year due to price appreciation. For a sale that closed 18 months ago at $400,000, the time-adjusted price is approximately:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →