Which term is used to describe the useful life of an improvement?

The term used to describe the useful life of an improvement is "Economic life." This concept refers to the period during which a property or improvement is expected to be economically viable, meaning it can generate revenue or maintain its value effectively. Economic life takes into account factors such as depreciation, market conditions, and overall property management.

Understanding economic life is essential in real estate appraisal practices because it helps appraisers evaluate how long an improvement will contribute to the value of a property and informs investors and property owners about the lifespan of their investments. By estimating economic life, stakeholders can make informed decisions regarding maintenance, replacement, and investment in improvements.

The other terms listed have specific meanings but do not accurately define the useful life in this context. For example, "Physical life" refers to the actual age a property improvement can last before it deteriorates, regardless of its utility or value to an owner. "Market life" typically pertains to the duration a property is expected to be marketable before experiencing a decline in market demand. "Effective life," while related to the concept of economic life, often refers to the modified age of an improvement after considering factors that can affect value, like renovations and market shifts. Therefore, "Economic life" is the most appropriate choice for defining