Property Valuation
In Tennessee, the 'economic life' of a building is the period during which:
AThe building is under construction
BThe building contributes positively to the value of the property✓ Correct
CThe building is owned by the original developer
DThe building is covered by the original construction warranty
Explanation
Economic life is the period during which a building contributes positively to the overall property value. When the cost of maintaining the building exceeds its contribution to value, its economic life has ended.
Related Tennessee Property Valuation Questions
- The principle of conformity states that value is maximized when:
- Regression in real estate valuation means that:
- When an appraiser makes a time adjustment to a comparable sale, they are adjusting for:
- Contributory value is the concept that:
- The 'highest and best use' of a property is defined as the use that is:
- The cost approach formula is: Value = Land Value + (Cost New − Depreciation). If land value is $80,000, cost new is $250,000, and total depreciation is $40,000, what is the estimated value?
- In the income approach, effective gross income (EGI) is calculated as:
- When a Tennessee appraiser adjusts a comparable sale for condition, they are accounting for differences in:
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