Estimation of Construction Depreciation by the Age-of-Life Method

摘要

Estimation of construction depreciation is an important element in the valuation of real estate by cost approach. The age method - economic life is one of the three methods of estimating the total depreciation of the buildings used by the authorized evaluators in Romania. The two elements used in estimating total depreciation are actual age and economic life. For estimating the economic lifetime a quantitative method can be used using market data.