Property Valuation
External obsolescence in a property appraisal refers to depreciation caused by:
APhysical wear and tear on the building
BOutdated floor plan or design
CFactors outside the property's boundaries✓ Correct
DDeferred maintenance by the owner
Explanation
External (economic) obsolescence is a loss in value caused by factors outside the property — such as proximity to a noisy highway, nearby industrial uses, or a declining neighborhood. It is typically incurable because the owner cannot fix external conditions.
Related Alaska Property Valuation Questions
- 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?
- The appraisal approach most commonly used to value single-family residential properties in Alaska is the:
- The principle of highest and best use in Alaska appraisal requires that the use be:
- A 'before and after' appraisal method is most commonly used in:
- In Alaska, the 'capitalization rate' is affected primarily by:
- 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:
- Under USPAP Standard 1, an appraiser must identify the 'intended use' of an appraisal because:
- In Alaska, an appraiser who is asked to value a property for a predetermined value is being asked to engage in:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →