Property Valuation
What is 'physical deterioration' in property appraisal?
ALoss in value from changes in neighborhood demographics
BLoss in value from wear, tear, and age of physical components of the property✓ Correct
CLoss in value from outdated design or features
DLoss in value from oversupply in the market
Explanation
Physical deterioration is loss in value due to the physical wearing out of improvements (roof, HVAC, paint, structure). It can be 'curable' (cost-effective to fix) or 'incurable' (not cost-effective or impossible to fix). It's the most straightforward type of depreciation.
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