What term describes a decline in property value?

The term that describes a decline in property value is depreciation. In real estate, depreciation is used to express the decrease in value of a property over time due to various factors such as wear and tear, lack of maintenance, or market fluctuations. This decrease can be due to physical deterioration of the property, changes in the surrounding area, or shifts in market demand.

Understanding depreciation is crucial for various real estate assessments, such as calculating tax deductions or evaluating investment potential. It directly impacts property owners, investors, and realty professionals when making informed decisions about buying or selling properties. The other terms listed—appreciation, valuation, and depreciation expense—refer to different concepts, such as an increase in property value, the process of determining a property's worth, and a financial accounting term related to asset value reduction for tax purposes, respectively.