Property Valuation
The economic life of an improvement is the period during which:
AThe property can be legally occupied
BThe improvement contributes value to the land✓ Correct
CThe building is under warranty
DThe property generates maximum rent
Explanation
Economic life is the period over which an improvement (building) contributes value to the underlying land and is useful for investment purposes—distinct from its physical life.
Related North Carolina Property Valuation Questions
- A NC appraiser who determines that a property's highest and best use is for residential development rather than the current agricultural use would reflect this in:
- An adjustment in the sales comparison approach for a feature the subject property HAS but the comparable does NOT have requires the appraiser to:
- Plottage value refers to:
- Progression in real estate value means:
- Depreciation in the cost approach to real estate valuation refers to:
- The income approach to value is most appropriate for which type of NC property?
- In the cost approach, reproduction cost is the cost to:
- In the cost approach, 'land value' is estimated separately because:
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