What does TEL represent in appraisal terms?

In appraisal terms, TEL stands for Total Economic Life. This concept refers to the estimated period over which an asset, particularly a property or a building, is expected to provide useful service to its owner or be economically viable. Understanding Total Economic Life is crucial for appraisers as it impacts property valuation and investment decisions.

The significance of Total Economic Life lies in its use for calculating depreciation, informing replacement or renovation decisions, and assessing long-term asset sustainability. By accurately estimating this period, appraisers can provide a more informed valuation that reflects the true earning potential and lifespan of the property being appraised.