What does "physical deterioration" refer to in property appraisal?

"Physical deterioration" in property appraisal specifically refers to the decrease in property value due to wear and tear. This concept encompasses any physical decline in the condition of a property as a result of use, age, and environmental factors. Over time, properties may experience issues such as peeling paint, worn flooring, roof leaks, or foundation problems, all of which contribute to a decrease in its overall value and usability.

Understanding physical deterioration is crucial for appraisers because it directly impacts the estimated value of a property. This form of deterioration is typically accounted for in valuation methods, reflecting the need for repairs or maintenance when determining a property's market value.

The other options highlight different aspects of property appraisal but do not correctly describe physical deterioration. For instance, a decline in aesthetic appeal pertains more to the visual aspects of a property rather than its structural integrity, while aging due to market conditions and the impact of economic downturns reflect external influences rather than the physical state of the property itself.