Property Valuation
Which type of depreciation is caused by factors external to the property, such as a nearby industrial plant, and is generally considered incurable?
APhysical deterioration
BFunctional obsolescence
CEconomic (external) obsolescence✓ Correct
DDeferred maintenance
Explanation
Economic or external obsolescence results from factors outside the property boundaries (e.g.
Related Arizona Property Valuation Questions
- In a declining market, an Arizona appraiser must consider:
- In Arizona, a property appraiser finds that the subject property has a 3-car garage while all comparables have 2-car garages. If the market shows a 2-car garage adds $8,000 in value over a 1-car, the appraiser would make:
- A gross rent multiplier (GRM) is calculated by dividing the:
- Depreciation in real estate appraisal refers to:
- In the sales comparison approach, if a comparable property sold for $320,000 and has a pool worth $15,000 that the subject property lacks, the appraiser should:
- Accrued depreciation in the cost approach refers to:
- An appraisal performed to estimate value for a mortgage loan is typically ordered by:
- A property in Arizona has a gross rent multiplier (GRM) of 120 and rents for $1,800 per month. What is the estimated value using the GRM method?
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →