Property Valuation
Permafrost thaw beneath a building in Alaska is an example of which type of depreciation in an appraisal?
APhysical deterioration — curable
BFunctional obsolescence
CExternal (economic) obsolescence
DPhysical deterioration — incurable✓ Correct
Explanation
Permafrost thaw causing structural settlement represents physical deterioration that is often incurable — the cost to fully remediate the damage may exceed the benefit. It is a physical condition of the property itself (not a design flaw or external factor), making it physical deterioration rather than functional or external obsolescence.
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