What does 'Remaining Economic Life' signify?

'Remaining Economic Life' signifies the remaining years in which an improvement continues to contribute positively to the property’s value. This concept is critical in property appraisal as it helps assessors determine how much value a property can still yield over time.

It reflects not only the physical condition of the property but also its economic utility and relevance in the market. A property's improvements might still be functional and aesthetically appealing, thereby supporting its value; however, the remaining economic life can decline based on factors such as market trends, economic conditions, or changes in zoning laws.

The other choices do not accurately capture the definition of 'Remaining Economic Life.' While the expected lifespan of the property does consider the full life cycle, it does not focus specifically on the current contribution to value. The time until major repairs or the time before a property is unsellable deals with aspects of property maintenance and marketability rather than the economic value of the existing improvements.