What does the term 'percent good' refer to in real property appraisal?

The term 'percent good' in real property appraisal specifically refers to the concept of remaining economic life of a property. It quantifies the portion of the property's life that is still usable or functional, expressed as a percentage. This is crucial in determining the depreciation of a property, as it allows appraisers to assess how much of the property's value is still retained based on its physical condition and economic viability.

Understanding the remaining economic life provides insights into how long the property is expected to maintain its value before becoming obsolete or requiring significant investment to keep it in a rentable or sellable condition. It is a valuable metric in property valuation, particularly when making comparative analyses or evaluating the appropriate adjustments for depreciation due to age, wear and tear, or other market factors.

While the overall condition, potential market value, and calibration of property depreciation are related concepts in appraisal, they do not specifically define 'percent good.' Rather, percent good is focused on evaluating the usable life left in the property relative to its total expected lifespan, which directly impacts its valuation.