Property Valuation
External obsolescence (economic obsolescence) is caused by:
AOutdated design within the property
BPhysical deterioration of building materials
CNegative factors outside the property that reduce its value✓ Correct
DExcessive maintenance costs
Explanation
External obsolescence results from factors outside the property, such as nearby industrial uses, airport noise, economic decline of the area, or new highway construction. It is always incurable (the property owner cannot correct it).
Related Arkansas Property Valuation Questions
- Physical deterioration that can be corrected at a cost that is less than the resulting increase in value is called:
- The principle of HIGHEST AND BEST USE means the use that is:
- Accrued depreciation in the cost approach equals:
- The principle of ANTICIPATION in appraisal states that:
- Economic life of an improvement differs from physical life in that it is:
- The principle of CONTRIBUTION states that:
- In an appraisal, an adjustment for a comparable sale that is SUPERIOR to the subject property results in:
- The principle of substitution states that:
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