Physical Deterioration

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

• A form of depreciation
• Results from physical wear
• Affects improvements, not land
• May be curable or incurable

• 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

• Failure to maintain property
• Leads to accelerated physical deterioration
• Often considered curable if economically feasible

• Physical deterioration is caused by use and age
• Only improvements suffer physical deterioration