What Are The Two Types Of Physical Deterioration In Real Estate? Physical deterioration and functional obsolescence are further divided into two-sub categories: curable and incurable depreciation. What are the physical deterioration? Physical deterioration is the loss in the physical efficiency of an asset as it ages. Efficiency in this context refers to the asset’s ability
Is External Obsolescence Curable? External obsolescence may not be curable by the landlord, owner or tenant, and may be caused by economic or locational factors. The characteristics of a neighborhood that lead to external obsolescence can change over time and depend on the market, says Richard Borges II, president of the Appraisal Institute. Is economic
What Is An Obsolescence? Examples of planned obsolescence include: Limiting the life of a light bulb, as per the Phoebus cartel. Coming out with a new model for a car every year with minor changes. Short-lasting nylon stockings. What do you mean by obsolescence? : the process of becoming obsolete or the condition of being
What Is The Best Example Of Functional Obsolescence? Functional obsolescence occurs when an asset becomes less useful or desirable due to an outdated design that can’t easily be updated or changed. (Tweet this!) In recent decades, functional obsolescence is most often the result of new technology; a good example is VHS videotape. What is an