In real estate appraisal, physical deterioration refers to the loss in value of a property caused by impairment of its physical condition. This decline results from factors such as wear and tear, aging, use, and exposure to the elements.
Physical deterioration may be classified as curable or incurable. Curable deterioration is economically feasible to repair, while incurable deterioration is not practical to correct due to excessive cost or limited remaining useful life of the improvement.
