An Alaska appraiser notes that several properties in a neighborhood sold at significant discounts because of a nearby industrial odor. This is an example of value lost to:
Why External obsolescence from a negative environmental influence Is Correct
Answer C: External obsolescence from a negative environmental influence
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
People Also Study
Related Alaska Questions
- External (economic) obsolescence affecting Alaska property values might be caused by:Property Valuation
- Obsolescence caused by a zoning change that allows an incompatible use adjacent to a residential property in Alaska is an example of:Property Valuation
- An Alaska residential property was appraised at $425,000. The owner disputes the value, claiming the appraiser failed to consider permafrost-related foundation issues that require $30,000 in remediation. This claim relates to which type of depreciation?Property Valuation
- An Alaska residential lot comparable to the subject sold 18 months ago for $80,000. The market has appreciated 3% per year since then. What is the time-adjusted value of the comparable?Property Valuation
- A deed restriction in Alaska that requires properties in a neighborhood to be used only for residential purposes is an example of:Property Ownership
- An Alaska property appraiser finds the cost to replace improvements is $620,000. Physical depreciation is 15%, functional obsolescence is 5%, and external obsolescence is 3%. Total depreciation is:Real Estate Math
- A building in Alaska has a replacement cost of $800,000. It is 25 years old with a 50-year economic life. Using straight-line depreciation, what is the depreciated value?Real Estate Math
- An Alaska property sells for $500,000. The buyer gets a loan for $400,000. The lender requires an appraisal. The appraiser values the property at $480,000. What is the maximum loan the lender will approve at 80% LTV based on appraised value?Finance
Key Terms to Know
A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →