Property Valuation
The economic life of an improvement in a Colorado appraisal refers to:
AThe number of years the improvement has existed
BThe remaining period during which the improvement contributes positively to property value✓ Correct
CThe time required to construct the improvement
DThe useful life for federal tax depreciation purposes
Explanation
Economic life is the period during which an improvement contributes to the value of the property above land value alone. It ends when the improvements no longer add value (often when demolition and redevelopment is the highest and best use).
Related Colorado Property Valuation Questions
- A Colorado appraiser uses three comparable sales to value a home. Comp 1 requires a $5,000 upward adjustment for a bedroom. Comp 2 requires a $3,000 downward adjustment for a garage. Comp 3 requires no adjustments and sold for $385,000. Which comp is the most reliable indicator of value?
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