Definition: The total loss in an improvement's value from all applicable causes as of the appraisal date, compared with its cost new.
Example
An appraiser considers physical deterioration, functional shortcomings, and adverse external influences when estimating depreciation.
Keep the distinction clear
Appraisal depreciation is not the same as an annual tax deduction or an accounting schedule. It concerns loss in value, not merely age.
Related terms
Depreciation · Cost-Depreciation Approach · Obsolescence
Keep studying
References: California DRE: glossary
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