Property Valuation
External obsolescence in property valuation is caused by:
ADeferred maintenance on the roof
BAn outdated kitchen layout
CA new waste treatment plant built adjacent to the property✓ Correct
DA structural crack in the foundation
Explanation
External (economic) obsolescence is a loss in value caused by factors outside the property, such as nearby nuisances, changes in neighborhood, or adverse economic conditions. It is generally incurable.
Related Arkansas Property Valuation Questions
- Reproduction cost in the cost approach is the cost to build:
- The sales comparison approach estimates value by:
- Effective age differs from chronological (actual) age in that effective age reflects:
- Which of the following properties would MOST benefit from the cost approach in appraisal?
- The principle of CONTRIBUTION states that:
- Which of the following is the primary document used by an appraiser for a standard residential appraisal?
- A capitalization rate derived from market transactions is called a(n):
- External obsolescence (economic obsolescence) is caused by:
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