When applying the cost approach in Florida, an appraiser must consider all of the following types of depreciation EXCEPT:
Correct Answer
D) Market obsolescence
Market obsolescence is not a recognized category of depreciation in appraisal theory. The three recognized types are physical, functional, and economic obsolescence. Physical deterioration refers to wear and tear from use and aging. Functional obsolescence occurs when a property lacks modern features or has poor design. Economic obsolescence (also called external obsolescence) results from factors outside the property affecting its value.
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