Property Valuation

Depreciation in appraisal refers to:

ATax deductions for real estate investors
BAny loss in value from any cause✓ Correct
CThe age of the improvements
DThe difference between land value and total value

Explanation

In appraisal, depreciation means any loss in property value from any cause — physical deterioration, functional obsolescence, or external obsolescence — measured from current cost to reproduce the improvements.

Related Michigan Property Valuation Questions

Practice More Michigan Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Michigan Quiz →