Property Valuation
Depreciation in appraisal is defined as:
AThe accounting method of writing off a building's cost over time
BAny loss in value from any cause — physical deterioration, functional obsolescence, or external obsolescence✓ Correct
COnly physical wear and tear to a structure
DThe decline in assessed value over 10 years
Explanation
In appraisal, depreciation means any loss in value from any cause. It encompasses physical deterioration (wear and age), functional obsolescence (design deficiencies), and external (economic) obsolescence (factors outside the property). It differs from accounting depreciation.
Related Rhode Island Property Valuation Questions
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