Property Valuation
In Texas, 'economic life' of an improvement refers to:
AThe number of years until the building needs paint
BThe period during which improvements contribute to the value of the property✓ Correct
CThe physical lifespan of construction materials
DThe time until the mortgage is paid off
Explanation
Economic life is the period of time over which improvements to real property contribute to its overall value. When the improvement no longer contributes positively (when cost to maintain exceeds value contribution), the economic life has ended even if the structure still stands.
Related Texas Property Valuation Questions
- The term 'as-is' value in a Texas appraisal means:
- Under USPAP (Uniform Standards of Professional Appraisal Practice), an appraiser's 'scope of work' must be:
- An appraiser using the sales comparison approach must make adjustments for differences between the subject and comparable properties. The most reliable adjustment amount comes from:
- Paired sales analysis is an appraisal technique used to:
- An appraiser using the income approach to value a commercial property calculates net operating income (NOI) by:
- The income capitalization approach to value is MOST appropriate for appraising:
- In Texas, the income approach formula is:
- When a property's value is affected by 'assemblage,' this refers to:
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