Property Valuation
Economic life of a building is defined as:
AThe number of years the building has been standing
BThe period during which the improvements contribute to the property's value✓ Correct
CThe time remaining until the building must be demolished
DThe useful life assigned by the IRS for depreciation purposes
Explanation
Economic life is the period during which improvements contribute positively to the property's overall value. When a building no longer contributes to value (its cost to maintain exceeds its contribution), its economic life has ended even if it is still physically standing.
Related Tennessee Property Valuation Questions
- In Tennessee, an appraiser who refuses to produce a predetermined value requested by a lender is:
- Plottage (assemblage) refers to:
- An appraisal is performed 'as of' a specific date. This date is called the:
- The cost approach to value is most reliable for:
- The gross rent multiplier (GRM) approach is best suited for:
- The principle of conformity states that value is maximized when:
- A 'drive-by' or 'exterior inspection' appraisal (Form 2055) in Tennessee is typically used for:
- Regression in real estate valuation means that:
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