Property Valuation
Economic obsolescence (external obsolescence) in appraisal refers to loss in value caused by:
APhysical deterioration from deferred maintenance
BOutdated kitchen fixtures or floor plans
CFactors outside the property such as a nearby landfill or economic decline in the area✓ Correct
DOver-improvement of the property relative to the neighborhood
Explanation
Economic (external) obsolescence is caused by factors outside the property's boundaries, such as proximity to a landfill, airport noise, neighborhood decline, or economic downturns. It is typically incurable because the owner cannot control external factors.
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