Property Valuation
Which of the following is an example of external (economic) obsolescence?
AA home with only one bathroom in a neighborhood where two are standard
BA factory built adjacent to a residential neighborhood✓ Correct
CA roof that needs replacement
DA kitchen with outdated appliances
Explanation
External (economic) obsolescence is caused by factors outside the property itself, such as a nearby nuisance, economic decline in the area, or adverse zoning changes. It is generally incurable by the property owner.
Related California Property Valuation Questions
- What is 'comparables' (comps) in real estate?
- Which appraisal approach is most commonly used for single-family homes?
- What is the standard appraisal form used for a single-family residential property in a federally related mortgage transaction?
- What is 'depreciation' in real estate appraisal?
- According to the principle of 'contribution,' an improvement adds value to a property:
- The cost approach to appraisal is MOST useful for which type of property?
- What does 'plottage' refer to?
- The principle of progression means:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →