Which of the following lists the three types of depreciation recognized in real estate appraisal?
Correct Answer
A) Physical deterioration, functional obsolescence, and external obsolescence
The three types of depreciation recognized in real estate appraisal are: physical deterioration (wear and tear on the structure), functional obsolescence (outdated or inadequate features that reduce desirability), and external obsolescence (loss in value caused by forces outside the property, such as neighborhood decline or nearby nuisances).
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