Property Valuation
Vermont's 'economic life' versus 'physical life' of a building:
AAre always equal
BEconomic life is the period during which improvements contribute to property value; physical life is how long the structure will stand✓ Correct
CPhysical life is shorter than economic life
DOnly economic life is relevant to appraisal
Explanation
A building's physical life is how long it can stand. Economic life is the period during which improvements contribute to the property's value.
Related Vermont Property Valuation Questions
- Vermont's 'effective age' of a property differs from its actual (chronological) age because:
- Vermont's 'land residual technique' in appraisal is used when:
- External (economic) obsolescence differs from functional obsolescence in that:
- The sales comparison approach to value is most appropriate for valuing:
- In Vermont, which of the following properties would the cost approach be LEAST reliable for valuing?
- Vermont's Uniform Standards of Professional Appraisal Practice (USPAP) require appraisers to:
- Vermont's 'market rent' analysis for lease comparables examines:
- The principle of substitution in Vermont real estate valuation states that:
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