Property Valuation
An Oregon appraiser identifies a property's 'remaining economic life.' This refers to:
AThe number of years until the mortgage is paid off
BThe estimated number of years the property improvements will continue to generate income or utility✓ Correct
CThe maximum number of years a property can be depreciated for tax purposes
DThe length of time until the property must be demolished
Explanation
Remaining economic life is the appraiser's estimate of the number of years the property's improvements will continue to be economically productive (generate value or income). It is used in the cost approach to estimate depreciation and in investment analysis to evaluate the property's viability.
Related Oregon Property Valuation Questions
- An Oregon appraiser performing a drive-by (exterior only) appraisal is completing which type of appraisal?
- The income capitalization approach to value is most useful for appraising:
- A property produces a net operating income (NOI) of $60,000 per year. If the capitalization rate is 6%, the property's estimated value using the income approach is:
- In a declining real estate market, which type of depreciation would most significantly affect property values?
- In real estate appraisal, the term 'market value' is best defined as:
- An appraiser performing a 'drive-by' or exterior-only appraisal produces what type of report?
- An appraiser estimating the value of a historic Portland craftsman home would most likely rely primarily on:
- An appraisal report that provides the full appraisal with all data, analysis, and conclusions presented is called:
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