Daily Real Estate Exam Prep Question #3 - Depreciation

Daily Real Estate Exam Questions Here!!! Today our question has to do with depreciation. Depreciation is any loss in the value of a property over time from any cause. There are three main forms of depreciation. The first one is Functional Obsolescence which is defined as a form of depreciation resulting in a loss in value due to conditions within the property. Like poor design, shaggy carpet, etc. The second is Economic Obsolescence which is caused by factors that are not on the property. Like flight patterns above your house, or your property being next to a highway. And lastly the third is Physical Deterioration which is a loss of value from all causes of age and action of the elements. Like roof repairs, broken tiles, peeled siding and more. -=-=-=-=- Don’t forget to like and subscribe for more! Want to learn more about the smart way to get your real estate license and start a successful real estate career? Then make sure to visit the Real Estate License Wizard, getting started is easy. Just click the page below: https://realestatelicensewizard.com -=-=-=-=-