Property Valuation
A Nebraska appraiser determines the economic life of a commercial building is 40 years. The building is 10 years old. The effective age is also 10 years. The remaining economic life is:
A30 years✓ Correct
B40 years
C50 years
D60 years
Explanation
Remaining Economic Life = Economic Life − Effective Age = 40 − 10 = 30 years. Effective age may differ from actual age — a well-maintained building may have an effective age less than its chronological age.
Related Nebraska Property Valuation Questions
- The market value of a property is best defined as:
- Highest and best use of a property is defined as the use that is:
- The principle of substitution in real estate valuation states that:
- Accrued depreciation in the cost approach is:
- The principle of progression in real estate states that:
- The cost approach to value is most reliable when:
- Effective gross income (EGI) in the income approach is calculated as:
- The cost approach to appraisal is most reliable for:
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