Property Valuation
What does 'physical deterioration' mean as a form of depreciation in real estate?
ALoss in value from external economic factors
BWear and tear from age and use on the physical structure✓ Correct
COutdated architectural design
DLoss in value from poor neighborhood conditions
Explanation
Physical deterioration is the loss in value from physical wear and tear, decay, or damage to the structure — such as a worn roof, cracked foundation, or deteriorating systems.
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