- Jan 27, 2004
- Professional Status
- Certified Residential Appraiser
The economic life is how long on average a structure can be expected to contribute with little/no maintenance and updating.
As for assumptions, there is no approach to value which isn't dependent on significant assumptions. So "assumptions" don't suddenly become a deal breaker just because it's the CA.
Doesn't it seem more reasonable to assume a modicum of maintenance and updating (reflective of the real market) than to assume no maintenance or updating for residential dwellings? To me, that's like saying a car has a life of 50,000 miles assuming you never change the oil.