Physical Deterioration

Definition: Loss in an improvement's value caused by wear, damage, decay, or the action of the elements.

Example

A worn roof and deteriorated plumbing contribute to a building's physical depreciation.

Keep the distinction clear

Physical deterioration differs from an outdated design or an adverse influence outside the property. Whether repair is economically justified affects the curable/incurable classification.

Related terms

Curable Depreciation · Incurable Depreciation · Depreciation

Keep studying

FREC Course II Syllabus

References: California DRE: appraisal and valuation