Property Valuation
External obsolescence affecting a property's value is caused by:
AWorn-out mechanical systems within the property
BAn outdated floor plan that no longer meets modern preferences
CFactors outside the property such as nearby industrial development or economic decline✓ Correct
DDeferred maintenance by the property owner
Explanation
External obsolescence (also called economic or locational obsolescence) is caused by factors outside the property's boundaries, such as proximity to an airport, industrial facility, or economic decline in the surrounding area. It is typically incurable.
Related Alaska Property Valuation Questions
- An Alaska appraiser using the cost approach calculates the following: land value $150,000, replacement cost new of improvements $400,000, total depreciation $80,000. The indicated value is:
- External (economic) obsolescence affecting Alaska property values might be caused by:
- An Alaska appraiser calculates a capitalization rate of 8% for an income property with an NOI of $40,000. Using direct capitalization, the indicated property value is:
- Which of the following types of depreciation is generally considered incurable?
- When appraising a remote Alaska property accessible only by floatplane, an appraiser should:
- In Alaska, assessed value for property tax purposes is set by boroughs. If a property has a market value of $400,000 and the assessment ratio is 80%, the assessed value is:
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