Property Valuation
Economic life of a building in the cost approach refers to:
AThe actual age of the building
BThe period during which the building contributes positively to the value of the property✓ Correct
CThe time remaining on the building permit
DThe number of years until the mortgage is paid off
Explanation
Economic life is the period during which the improvement (building) contributes to the property's value. Physical life may be longer. When the building no longer contributes value (or is a detriment), its economic life has ended.
Related Arizona Property Valuation Questions
- Highest and best use in Arizona appraisal analysis means the use that is:
- In the income approach to value, the capitalization rate is calculated as:
- Which of the following BEST defines 'highest and best use' of a property?
- In Arizona, an appraisal that is completed 'retrospectively' (for a date in the past) is called:
- In Arizona, when appraising a property in a 'declining market,' the appraiser must:
- A comparable sale used in the sales comparison approach should be:
- An Arizona appraisal for a 'retrospective' date requires the appraiser to:
- A 'drive-by' appraisal (exterior-only inspection) is typically used for:
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →