Property Valuation
Which of the following best describes 'economic life' versus 'physical life' of a Vermont building?
AThey are always identical
BPhysical life is how long a building can structurally stand; economic life is how long a building contributes positively to the land's value✓ Correct
CEconomic life is always longer than physical life
DPhysical life is used for tax depreciation; economic life is ignored in appraisal
Explanation
A Vermont building's physical life is how long it can remain structurally sound with maintenance. Economic life is shorter — the period during which the building contributes positively to property value. A building may be structurally sound but economically obsolete, which is important in the cost approach's depreciation analysis.
Related Vermont Property Valuation Questions
- Vermont's 'economic life' versus 'physical life' of a building:
- Vermont's 'tax assessed value' is useful in appraisal as:
- Vermont's 'land residual technique' in appraisal is used when:
- The income approach to value is most commonly used to appraise:
- Physical depreciation in Vermont real estate refers to:
- When a Vermont appraiser uses the 'paired sales analysis' to measure the value impact of a specific feature, they:
- Vermont's 'reappraisal year' refers to a municipality's periodic:
- Vermont's 'mass appraisal' system used for property tax purposes differs from individual appraisal in that it:
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