Orange County NC Website
Browse       Search
appraiser's experience in recognizing the symptoms of <br /> deterioration and obsolescence and his ability to exercise <br /> sound judgment in equating his observations to the proper <br /> monetary allowance to be deducted from the cost new. There <br /> are several acceptable guidelines which may be employed: <br /> 1. Physical deterioration, functional, and economic <br /> obsolescence can be observed by comparing the physical <br /> condition, functional deficiencies and the economic <br /> status of the subject property as of a given time with <br /> either an actual or hypothetical, comparable, new and <br /> properly planned structure. <br /> 2 . Curable physical deterioration and functional <br /> obsolescence can be measured by estimating the cost of <br /> restoring each item of depreciation to a physical <br /> deficiency. <br /> 3 . Economical obsolescence generally being incurable <br /> and un-measurable by standards of restoration will best <br /> be measured by extrapolating its observed loss from the <br /> market place. <br /> 4 . Physical, functional and economic obsolescence may <br /> also be measured by capitalizing the estimated loss in <br /> rental due to the deficiency. <br /> Total accrued depreciation may be estimated by first <br /> estimating the total useful life of a structure and then <br /> translating its present condition, usefulness, and <br /> desirability, into an effective useful life which when <br /> weighed would represent that portion of its total life <br /> (percentage) which has been used up. <br />