Property Valuation
In Rhode Island, what is 'physical deterioration' in the cost approach?
AA loss in value due to changing neighborhood characteristics
BLoss in value due to wear and tear, age, and deferred maintenance of the physical structure✓ Correct
CA loss in value due to outdated building systems
DA decrease in value from nearby environmental contamination
Explanation
Physical deterioration is the loss in value of a building due to physical wear and tear, decay, and deferred maintenance—the natural aging and wearing out of the structure and its components.
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