Property Valuation
The 'economic life' of a building in appraisal is defined as:
AA. The number of years the building has existed
BB. The period during which improvements contribute to the property's value✓ Correct
CC. The warranty period for building systems
DD. The loan amortization period
Explanation
Economic life is the period during which improvements to real estate contribute positively to the property's total value. When improvements no longer add value (because they contribute less to value than their cost to maintain), their economic life has ended.
Related Georgia Property Valuation Questions
- The 'cost to cure' method of depreciation estimates functional obsolescence by calculating:
- The 'gross rent multiplier' (GRM) is calculated as:
- The 'cost approach' gives the most reliable indication of value when:
- When an appraiser reports a value 'subject to completion' on a new construction, this means:
- A Georgia appraiser is valuing a neighborhood convenience store. Which approach to value is most likely to be primary?
- Reconciliation in the appraisal process involves:
- In the sales comparison approach, adjustments are made to the comparable properties because:
- The Gross Rent Multiplier (GRM) is calculated as:
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →