Property Valuation
In Florida, 'external obsolescence' (economic obsolescence) is characterized by:
AWorn-out carpet and outdated kitchen fixtures
BA poor floor plan that reduces functionality
CLoss in value caused by factors outside the property, such as nearby industrial development✓ Correct
DPhysical deterioration from deferred maintenance
Explanation
External (economic) obsolescence is caused by factors outside the property boundary — such as a new highway being built nearby, neighborhood decline, or economic downturns. It is typically incurable.
Related Florida Property Valuation Questions
- An appraiser finds that a comparable home sold for $285,000 but has an extra half bathroom that the subject property lacks. If a half bathroom contributes approximately $3,500 to value, what adjusted sale price is used for comparison?
- Which principle states that when two properties are similar, the value of the more expensive property is affected negatively by its proximity to the less expensive property?
- The highest and best use of a property in Florida is defined as the use that is:
- When a Florida appraiser makes a 'paired sales analysis,' they are:
- When an appraiser considers 'physical depreciation' that is 'curable,' this means:
- The principle of 'substitution' in real estate appraisal states that:
- Under FIRREA (Financial Institutions Reform, Recovery and Enforcement Act), licensed appraisers in Florida who perform federally related transactions must be:
- In the cost approach, the formula is: Value = Land Value + Depreciated Cost of Improvements. If a property has a land value of $95,000, replacement cost new of $320,000, and total accrued depreciation of 25%, the indicated value is:
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