Property Valuation
What is 'economic life' versus 'physical life' of a building in an Idaho appraisal?
AThey are identical concepts
BPhysical life is how long the structure can stand; economic life is the period during which the building contributes value to the property✓ Correct
CEconomic life is longer than physical life
DPhysical life only refers to the roof's lifespan
Explanation
Physical life is the total period a structure can exist before it must be demolished. Economic life is the shorter period during which the structure contributes to the property's value — a building may physically stand but have no economic value.
Related Idaho Property Valuation Questions
- What is 'highest and best use' analysis in Idaho real estate appraisal?
- When an appraiser 'brackets' comparable sales, they are:
- An appraisal is defined as:
- The principle of progression states that:
- The principle of substitution states that a buyer will pay no more for a property than:
- The capitalization rate (cap rate) reflects:
- A USPAP-compliant appraisal in Idaho means the appraiser has followed:
- What is 'highest and best use' in real estate appraisal?
Practice More Idaho Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Idaho Quiz →