Principles of Real EstateQuestion 14 of 100

Which type of depreciation is generally considered incurable?

a.External (economic) obsolescence caused by a nearby factory
b.Deferred maintenance such as peeling paint
c.A broken window
d.A worn carpet

Explanation

External or economic obsolescence stems from factors outside the property, such as a neighboring nuisance, which the owner cannot fix, so it is typically incurable. Deferred maintenance and many functional issues can be corrected at reasonable cost. Curability depends on whether the fix adds value at least equal to its cost.

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