What does accrued depreciation account for in property value assessments?

Accrued depreciation refers specifically to the reduction in value of a property over time due to various factors, most notably physical deterioration, functional obsolescence, and economic obsolescence. This concept is crucial in property value assessments as it helps appraisers determine the current market value of a property by accounting for its age and condition relative to its initial cost.

For example, as a building ages, its components may wear out, systems may become outdated, or it may no longer meet the current needs of users, all contributing to a decrease in value. By quantifying this loss of value, appraisers can provide a more accurate estimate of a property's worth in the current market, reflecting its actual condition and usability rather than its original construction value or potential.

While other factors mentioned in the choices may also influence property value, they do not specifically encapsulate the concept of accrued depreciation, which focuses solely on the diminishing value caused by time and use.