Property Valuation
External (economic) obsolescence differs from functional obsolescence in that it is:
AAlways curable
BCaused by factors outside the property boundaries and is generally incurable✓ Correct
CRelated to physical wear and tear on the structure
DA form of depreciation that only applies to new homes
Explanation
External obsolescence results from factors outside the property, such as a neighborhood in decline, proximity to a noisy airport, or adverse economic conditions. It is generally incurable because the owner cannot control external factors.
Related Georgia Property Valuation Questions
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