Property Valuation
Economic life of a building in Minnesota appraisal refers to:
AThe physical age of the structure
BThe period during which the building contributes positively to the value of the property✓ Correct
CThe time remaining on the building permit
DThe term of the mortgage on the property
Explanation
Economic life is the period during which a building contributes positively to the land's value. It may be shorter than the physical life (how long it actually stands) due to obsolescence or changing market conditions.
Related Minnesota Property Valuation Questions
- In Minnesota, the sales comparison approach uses 'adjustments' to comparable sales. These adjustments are made to:
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