Property Valuation

Which of the following would be considered 'external obsolescence' for an Arizona property?

AAn outdated bathroom needing renovation
BDeteriorating roof shingles
CA new highway constructed adjacent to a residential neighborhood, increasing noise and traffic✓ Correct
DA non-functioning HVAC system

Explanation

External obsolescence (economic obsolescence) results from factors outside the property—new highways, industrial facilities, declining neighborhoods, or other external conditions reducing the property's value.

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