====== Physical Deterioration ======

**Physical deterioration** is the **loss of property value** caused by **wear and tear, age, or use** of the improvements.

===== Key Characteristics =====
  * A form of **[[depreciation]]**
  * Results from **physical wear**
  * Affects **improvements**, not land
  * May be **curable or incurable**

===== Types of Physical Deterioration =====
  * **Curable Physical Deterioration**
    * Cost to repair is **less than** the value added
    * Examples: repainting, replacing carpet, fixing a broken window

  * **Incurable Physical Deterioration**
    * Cost to repair is **greater than** the value added
    * Examples: structural damage, foundation failure

===== Deferred Maintenance =====
  * Failure to maintain property
  * Leads to accelerated physical deterioration
  * Often considered **curable** if economically feasible

===== Exam Tip =====
  * Physical deterioration is caused by **use and age**
  * Only improvements suffer physical deterioration