ValuationDepreciationMEDIUM
Physical deterioration, functional obsolescence, and external obsolescence are the three types of:
Correct Answer
B) Depreciation
Depreciation in real estate appraisal has three categories: physical deterioration (wear and tear), functional obsolescence (outdated design or features), and external/economic obsolescence (negative factors outside the property such as a busy highway nearby).
Answer Options
A
Property improvementsB
DepreciationC
Zoning classificationsD
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Related Topics & Key Terms
Related Topics:
curable-vs-incurablecost-approacheffective-ageeconomic-life
Key Terms:
depreciationphysicalfunctionalexternalcurable vs incurable
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