Property Valuation
What is 'external obsolescence' in real property appraisal?
ADeterioration caused by deferred maintenance and physical wear
BFunctional deficiency caused by outdated design or layout
CLoss in value caused by factors outside the property — such as a nearby industrial facility, highway noise, or neighborhood decline✓ Correct
DDepreciation caused by changes in building code requirements
Explanation
External obsolescence (also called economic obsolescence) is a loss in value caused by negative factors outside the property and beyond the owner's control — such as proximity to industrial uses, high-traffic roads, neighborhood decline, or adverse economic conditions. It is considered incurable depreciation.
Related Delaware Property Valuation Questions
- Which approach to value is most appropriate for a Delaware single-family residence in a neighborhood of recent sales?
- A Delaware commercial property has a net operating income (NOI) of $90,000 and is purchased for $1,125,000. What is the capitalization rate?
- What is an 'as stabilized' value in Delaware commercial real estate appraisal?
- What does 'market value' mean in real estate appraisal?
- What is 'stabilized NOI' in Delaware commercial real estate appraisal?
- What is a 'diminution in value' claim in Delaware eminent domain proceedings?
- What is the 'principle of substitution' in real estate appraisal?
- In the sales comparison approach, what is a 'comparable sale' (comp)?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →