Valuation & AppraisalQuestion 101 of 120
Which of the following is a form of physical deterioration in an appraisal?
a.An outdated one-car garage in a two-car neighborhood
b.A newly built freeway causing noise nearby
c.A worn roof and peeling paint due to age and wear
d.A declining local job market
Explanation
Physical deterioration is a loss in value from wear, tear, age, and the action of the elements, such as a worn roof or peeling paint. It can be curable or incurable depending on cost. Functional and external obsolescence are the other two categories of depreciation.
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Related questions on this topic
- A comparative market analysis (CMA) prepared by a licensee differs from a formal appraisal because it:
- Accrued depreciation in the cost approach represents:
- Market value, as used in appraisal, generally assumes:
- The 'gross rent multiplier' (GRM) is calculated by:
- An appraiser reconciling the results of the three approaches to value will:
- Which factor would most likely cause economic (external) obsolescence?
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