Valuation
Accrued Depreciation
A concise definition for the California Real Estate Exam study guide.
Definition
Total loss in value from all causes: physical deterioration + functional obsolescence + external (economic) obsolescence. Deducted from improvement cost in the cost approach.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 6: Valuation & Appraisal →