Property Valuation
What is the economic life versus the physical life of a building in Nevada appraisal?
AThey always equal the building's age
BPhysical life is the period a building can be maintained in good condition; economic life is the period during which the building makes a positive contribution to property value — economic life is typically shorter✓ Correct
CEconomic life always exceeds physical life
DBoth terms refer to the depreciation schedule for tax purposes
Explanation
Physical life is how long a building can structurally remain standing with proper maintenance. Economic life is the period during which a building contributes positively to property value.
Related Nevada Property Valuation Questions
- What is 'absorption rate' and how is it calculated for the Nevada housing market?
- What is a narrative appraisal report in Nevada and when is it used?
- The principle of conformity holds that property values are maximized when:
- What is a before-and-after appraisal in Nevada condemnation (eminent domain) proceedings?
- What is 'value per unit' analysis in Nevada multifamily real estate?
- A Nevada property has a replacement cost of $300,000 for improvements and 20% depreciation. If the land is worth $80,000, what is the cost approach value?
- What is the Automated Valuation Model (AVM) and how is it used in Nevada real estate?
- What is the Uniform Standards of Professional Appraisal Practice (USPAP) and why does it matter in Nevada?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →