What is an essential factor that can affect a property's depreciation in appraisals?

The essential factor that can significantly affect a property's depreciation is its physical condition and maintenance. When evaluating a property, appraisers consider not only the age of the property but how well it has been maintained and any physical deterioration it may have experienced over time.

A property that is in poor physical condition, with issues like structural damage, outdated systems, or lack of maintenance, can suffer from functional and economic obsolescence. This reduction in value occurs because potential buyers will be less willing to pay a premium for a property that requires extensive repairs or has not been well cared for.

On the other hand, properties that have been well-maintained or upgraded may experience less depreciation or even appreciate in value, despite their age. Therefore, the physical condition and maintenance of a property are critical in assessing its value over time and play a key role in determining the extent of its depreciation.