Property Valuation
What is 'economic obsolescence' in property appraisal?
APhysical wear and tear from normal use
BLoss of value from within the property (poor floor plan, outdated systems)
CLoss of value caused by external factors beyond the property boundaries, such as a nearby industrial plant or economic decline✓ Correct
DDepreciation caused by outdated construction methods
Explanation
Economic (external) obsolescence is a loss in property value caused by factors external to the property, such as nearby industrial uses, declining neighborhood conditions, airport noise, or changes in the local economy. It is generally the most difficult form of depreciation to cure.
Related California Property Valuation Questions
- Functional obsolescence refers to:
- Gross Potential Income (GPI) in real estate income analysis represents:
- The Uniform Standards of Professional Appraisal Practice (USPAP) are developed and maintained by:
- What is 'functional obsolescence' as used in real estate appraisal?
- Which appraisal approach is most commonly used for single-family homes?
- The effective age of a building refers to:
- The sales comparison approach to value is MOST reliable for:
- Which appraisal approach is most appropriate for valuing a special-purpose property such as a church or school with few comparable sales?
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