Property Valuation
In Maine, 'economic life' of a building means:
AHow long the building can physically stand
BThe period over which the building contributes positively to property value✓ Correct
CThe mortgage amortization period
DThe building permit lifespan
Explanation
Economic life is the period during which the improvements contribute to property value (are worth more than the land alone). It may be shorter than physical life if the building becomes functionally or economically obsolete.
Related Maine Property Valuation Questions
- A Maine appraiser making paired sales analysis is comparing two similar homes, one with a garage and one without. The garage home sold for $265,000 and the non-garage home sold for $252,000. The indicated value of the garage is:
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