Property Valuation
A Florida appraiser identifies 'external obsolescence' affecting a residential property located near a newly constructed interstate highway. This depreciation is:
ACurable because the highway can be soundproofed
BIncurable because the cause is outside the property owner's control✓ Correct
CPhysical deterioration caused by the highway's vibrations
DFunctional obsolescence due to traffic noise affecting the floor plan's utility
Explanation
External (economic) obsolescence is caused by factors outside the property's boundaries — a new highway, airport, landfill, or declining neighborhood. It is always considered incurable because the property owner cannot control external factors. The appraiser must estimate the loss in value due to these external influences.
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