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hi everybody this is joe from prep agent i want to talk about the three types of depreciation functional obsolescence economic obsolescence and physical deterioration physical deterioration is obviously your house falling apart functional obsolescence is when your property loses value because things such as poor design things are in the property that are under your control and economic obsolescence when your property loses value to due to cause outside the property lines like an airport or crime in the neighborhood i hope that helps keep studying and learn your five words every single day