Property Valuation
Economic life of a building in the cost approach refers to:
AThe physical life of the building's structure
BThe period over which the building can be profitably used✓ Correct
CThe time until the building needs replacement
DThe term of the building's mortgage
Explanation
Economic life is the period during which the building contributes positively to property value — it is typically shorter than physical life.
Related Maryland Property Valuation Questions
- In Maryland, the principle of contribution states that the value of a component is measured by:
- When a Maryland appraiser uses the cost approach for a 20-year-old residential property, they must estimate accrued depreciation. If the total depreciation is 30%, and the replacement cost new is $400,000, the depreciated value of improvements is:
- In Maryland, a 'drive-by appraisal' (exterior-only inspection) is less reliable than a full interior appraisal because:
- The market value of a Maryland property is best defined as:
- An appraiser discovers that a Maryland comparable sale involved a motivated seller who accepted a deeply discounted price due to divorce. This sale should be:
- Maryland market rent is defined as:
- An appraiser in Maryland who violates the Uniform Standards of Professional Appraisal Practice (USPAP) may face discipline from:
- The income multiplier approach to valuing Maryland residential rentals typically uses a:
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →