Lesson 9 Flashcards
Physical Curable
Physical wear and tear that can be corrected economically and immediately, such as repainting worn-out painted areas, or replacing worn-out kitchen flooring
Physical Incurable (Short-Lived)
Physical wear and tear that would not be immediately corrected as there still is remaining utility. For example, roof shingles that are half-worn out, but would have to be replaced before the end of the economic life of the house.
Physical Incurable (Long-Lived)
Physical wear and tear that would not be immediately corrected for building components with the same remaining economic life as the structure. For example, foundation or structural walls, trusses, or joists that still adequately perform their function.
Functional Curable
An outdated feature, deficiency, or superadequacy that can be corrected economically, such as outdated bathroom fixtures
Functional Incurable
A deficiency or superadequacy that cannot be corrected economically, such as poor floor plan that would require a significant redesign and remodeling of the building; the benefit to market value would not be offset by the cost
Depreciation
A loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date.
Physical Life
Total period of time that the building can remain standing.
Chronological Age
The actual age of the building; the number of years since it was originally built.
Effective Age
Based on the property’s condition and overall maintenance. Can be the same as, lesser than, or greater than its actual age at the date of the appraisal.
Economic Life
Period of time over which the improvements will contribute to the overall property value. Normally shorter than physical life.
Useful Life
Period of time over which a structure may be reasonably expected to perform the function for which it was designed
Remaining Economic Life
The remaining expected economically productive life span of the structure in the future. Measured as the difference between economic life and effective age.
Functional Obsolescence
Usually the result of the property no longer conforming to market demand
