Property Valuation
In the cost approach to value, 'external obsolescence' differs from 'physical deterioration' in that:
AA. External obsolescence is caused by factors outside the property, such as nearby industrial development or neighborhood decline✓ Correct
BB. External obsolescence is always curable
CC. Physical deterioration is incurable
DD. They mean the same thing
Explanation
External (economic) obsolescence arises from factors outside the property's boundaries — such as a new highway nearby, neighborhood decline, or economic changes — and is almost always incurable by the owner. Physical deterioration is wear and tear on the structure itself.
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