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Depreciation — The Three Killers
National · Valuation & Appraisal — free cheat sheet for the real estate licensing exam.
📐 Valuation & Appraisal
📋 The 1-minute cheat sheet
- Physical deterioration: wear & tear — usually CURABLE (paint, roof)
- Functional obsolescence: outdated design — 1-bath 5-bed, no closets; curable if fix cost ≤ value added
- External (economic) obsolescence: outside causes — airport noise, declining area — ALWAYS incurable
- Only applies to IMPROVEMENTS — land never depreciates
- Appraisal depreciation ≠ tax depreciation (that's cost recovery)
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Is Depreciation — The Three Killers on the real estate exam?Yes. Valuation & Appraisal is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?Yes — every page on CinnaPrep's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
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