Property Valuation
Which type of accrued depreciation is considered 'incurable'?
ADeferred maintenance such as peeling paint
BA leaky roof that can be repaired cost-effectively
CExternal obsolescence caused by a nearby factory✓ Correct
DAn outdated kitchen that can be modernized
Explanation
External obsolescence is almost always considered incurable because the cause of the value loss is outside the property — the owner cannot fix a nearby factory or highway. Incurable depreciation cannot be repaired at a cost less than the benefit gained.
Related Alabama Property Valuation Questions
- Net income ratio (NIR) is calculated as:
- A capitalization rate decreasing over time in a market generally indicates:
- Capitalization rate (cap rate) is calculated as:
- What is 'over-improvement' in real estate?
- Regression in real estate appraisal means:
- An appraisal report for a single-family home mortgage most commonly uses which standardized form?
- An Alabama appraiser uses the income approach to value a rental property. The key formula is:
- The income capitalization approach to appraisal is MOST appropriate for:
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →