Title: Identify the three types of depreciation.
Course: Real Estate (12154) > Section: Appraising Residential and Income-Producing Property

Identification should include

- physical depreciation
- functional obsolescence
- external/economic obsolescence

and how each of these affect the real estate market.

DPOR correlations: 18VAC135-20-400. 1 (Economy and social impact of real estate); 18VAC135-20-400. 2 (Real estate market and analysis); 18VAC135-20-400. 20 (Appraisal of residential and income-producing property)

Teacher resource: Modern Real Estate Practice, 19th ed., pages 306-307

Process/Skill Questions:

- What types of factors are included in physical depreciation?
- What is meant by functional obsolescence in real estate?
- What factors decrease the economic value of real estate? What factors increase the economic value of real estate?
- What is the difference between functional and external/economic obsolescence?
- What is meant by curable variety and incurable variety, and which of the three types of depreciation is incurable?
- How can each type of depreciation be remedied?