Property Valuation
Which type of depreciation is NOT recoverable through repairs or renovation of the property?
APhysical deterioration — curable
BFunctional obsolescence — curable
CExternal obsolescence✓ Correct
DDeferred maintenance
Explanation
External (economic) obsolescence results from factors outside the property (nearby highway, factory, declining neighborhood) and is generally not curable by the property owner.
Related Maine Property Valuation Questions
- An appraiser in Maine is determining the assessed value of a property. The municipality uses an assessment ratio of 80%. If the market value is $350,000, what is the assessed value?
- In Maine, the 'principle of regression' means that a very expensive home in a neighborhood of modest homes will:
- In real estate valuation, 'highest and best use' means:
- A Maine waterfront home's value is primarily enhanced by 'locational value.' This is best described as value attributable to:
- Maine property taxes are based on assessed value, which municipalities typically set at:
- In Maine, the principle of substitution in real estate valuation states that:
- A Maine home has four bedrooms but only one bathroom. This is an example of:
- The cost approach to value is MOST reliable when valuing:
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →