Property Valuation
What is the physical deterioration of an Iowa rental property that is considered 'incurable'?
ADeferred maintenance that is economically feasible to fix
BPhysical deterioration that would cost more to repair than the value it adds✓ Correct
CFunctional obsolescence from an outdated floor plan
DExternal obsolescence from a nearby industrial use
Explanation
Incurable physical deterioration refers to physical decay that would cost more to remedy than the remediation would add in value. It is a form of depreciation that the appraiser deducts from the cost approach.
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