Property Valuation
Which type of depreciation is caused by factors outside the property, such as a nearby industrial facility?
APhysical deterioration
BFunctional obsolescence
CExternal (economic) obsolescence✓ Correct
DCurable depreciation
Explanation
External (economic) obsolescence is caused by factors outside the property — such as nearby industrial uses, declining neighborhood conditions, or economic downturns. It is typically incurable.
Related Alabama Property Valuation Questions
- An appraisal performed 'retrospectively' (as of a past effective date) is used for:
- The principle of 'contribution' in appraisal states that:
- The principle of conformity states that maximum value is achieved when:
- The principle of substitution states that:
- Which of the following properties would most likely be appraised using the cost approach as the primary method?
- A comparable sale that sold 18 months ago may require a time (market conditions) adjustment because:
- The principle of substitution states that a buyer will pay no more for a property than:
- What is 'over-improvement' in real estate?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →