Property Valuation
A property with a 'stigma' (such as a murder having occurred there) may experience what type of depreciation?
APhysical deterioration
BExternal/economic obsolescence due to adverse conditions affecting marketability✓ Correct
CFunctional obsolescence
DNo depreciation — stigma is not a real estate factor
Explanation
Stigmatized properties (site of crime, death, alleged haunting) may suffer market value reduction due to buyer reluctance, which is a form of external obsolescence related to adverse conditions.
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