A comparable sale has a sale price of $550,000 (V) and a lot value of $90,000 (V_).

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A comparable sale has a sale price of $550,000 (V) and a lot value of $90,000 (V_). The site improvements(Vs) have a contributory value of $25,000, and the cost of construction of the house is $550,000.

What is theimplied economic life if the house is 20 years old?

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Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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Posted Date: Apr 17, 2023 11:51 PM

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A comparable sale has a sale price of $550,000 (V) and a lot value of $90,000 (V_).

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Expert Answer:

To calculate the implied economic life of the house we can use the cost approach method The formula ... View the full answer

Real Estate Finance and Investments

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