Question

Mrs. Jenkins has lived in her little 1940s cottage for forty years. Her home is immaculately maintained; it has a beautiful, well-manicured garden, and is just as lovely inside as outside. Unfortunately, the same cannot be said for the rest of her neighborhood. Other neighbors have let their properties go downhill. There is absolutely no curb appeal to any of the other homes in her neighborhood. Mrs. Jenkins' neighborhood is definitely in decline. Which type/types of depreciation applies/apply?

A. Economic, Environmental, or External Obsolescence
B. Physical Deterioration
C. Functional Obsolescence
D. Physical Deterioration and Functional Obsolescence

Answer 1

The correct answer is A) Economic, Environmental, or External obsolescence.

The types of depreciation that apply are Economic, Environmental, or External obsolescence.

Mrs. Jenkins' neighborhood is definitely in decline because is depreciating due to economic, environmental, or external obsolescence.

Although she has a beautiful cottage, well preserved, the neighborhood is in bad conditions for the situation statted above. Her property is depreciating because the surroundings are not favoring her property. It would be very difficult for a real state agent to upgrade the value of her property because the neighborhood doesn't seem attractive to other people.