Property Valuation
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:
AFunctional obsolescence
BPhysical deterioration
CExternal obsolescence from a negative environmental influence✓ Correct
DCurable depreciation
Explanation
Industrial odors from a nearby facility represent a negative external factor that reduces the desirability and value of surrounding residential properties. This is external (economic) obsolescence — incurable depreciation caused by factors outside the subject property's control.
Related Alaska Property Valuation Questions
- In Alaska, the 'principle of balance' in valuation refers to:
- The principle of substitution in appraisal holds that:
- Functional obsolescence in real estate appraisal refers to:
- A licensee in Alaska performing a comparative market analysis (CMA) is:
- Market value in an appraisal is defined as:
- External (economic) obsolescence affecting Alaska property values might be caused by:
- An Alaska appraiser is determining the value of a property in a remote area with no comparable sales. Which approach would likely be MOST useful?
- An appraiser uses the cost approach for a property and estimates reproduction cost new at $380,000, land value at $75,000, and total depreciation at $55,000. What is the estimated value?
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