Property Valuation
In Alaska, 'deterioration' in appraisal refers to which form of depreciation?
AFunctional obsolescence
BPhysical depreciation caused by wear, tear, and aging of the improvements✓ Correct
CExternal obsolescence from negative neighborhood factors
DEconomic depreciation from market decline
Explanation
Deterioration (physical depreciation) refers to the loss in value due to physical causes — wear and tear from use, weathering, deferred maintenance, and the natural aging of building materials and components. It is the most common form of depreciation in Alaska's harsh climate.
Related Alaska Property Valuation Questions
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