Property Valuation

External (economic) obsolescence as a cause of depreciation is characterized as:

ACurable depreciation from within the property
BIncurable depreciation caused by factors outside the property✓ Correct
CPhysical deterioration from deferred maintenance
DFunctional obsolescence caused by poor floor plan design

Explanation

External obsolescence is a loss in value caused by negative influences outside the property — such as a nearby highway, environmental contamination, or economic decline in the neighborhood. It is generally incurable.

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