Depreciation in a structure is attributed to which of the following causes?

Depreciation in a structure is influenced by several specific factors that lead to a decline in the property’s value over time. The correct choice highlights three significant causes: physical deterioration, functional obsolescence, and external obsolescence.

Physical deterioration refers to the wear and tear that occurs from regular use and the impact of weather over time. This type of depreciation is evident through issues like cracking walls, aging roofs, or plumbing problems, all of which can reduce a property’s appeal and functionality.

Functional obsolescence occurs when a property no longer meets the needs of current users. This can happen due to changes in design preferences, technology, or building codes that render a property less desirable. For instance, a home with insufficient bathrooms or outdated electrical systems may not compete well in the modern market.

External obsolescence arises from outside factors that negatively impact a property’s value, such as changes in the neighborhood, economic downturns, or zoning changes that diminish the desirability of the area. For example, if a factory opens nearby, it may introduce noise and pollution that deter potential buyers.

By encompassing all three types of obsolescence, the correct answer provides a comprehensive view of how various influences can lead to depreciation in real property. Understanding these causes