Property Valuation
External (economic) obsolescence differs from other forms of depreciation because it is:
ACaused by physical wear of the structure
BAlways curable by the property owner
CCaused by factors outside the property — typically incurable by the owner✓ Correct
DLimited to properties more than 50 years old
Explanation
External obsolescence results from factors beyond the property boundaries (e.g., airport noise, a new industrial plant nearby, neighborhood decline). It is generally incurable by the owner.
Related Arkansas Property Valuation Questions
- The principle of contribution states that the value of an improvement is measured by:
- Which of the following would cause an appraiser to use the cost approach as the primary method of valuation?
- A cap rate of 5% versus a cap rate of 10% on the same NOI would indicate:
- Which of the following is the primary document used by an appraiser for a standard residential appraisal?
- An appraiser reviewing an income property's 'rent roll' is examining:
- In the cost approach, land is always valued separately using:
- The income multiplier approach is most reliable for:
- An appraiser uses a value-in-use estimate for which of the following?
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