Property Valuation
External obsolescence (also called economic or locational obsolescence) is:
AA. Always curable through renovation
BB. Loss of value caused by factors outside the property, such as nearby industrial use✓ Correct
CC. Depreciation from physical wear and tear
DD. Loss of value from outdated floor plans
Explanation
External obsolescence results from factors outside the property (nearby nuisances, economic downturns, neighborhood decline). It is generally incurable because the owner cannot control external factors.
Related Georgia Property Valuation Questions
- The 'principle of conformity' in real estate valuation states that:
- A 'drive-by' appraisal (exterior-only inspection) is:
- Functional obsolescence in real property refers to:
- The principle of progression states that a property's value is:
- The income capitalization approach to value assumes that value is:
- In the cost approach, the formula for estimating value is:
- A plottage increment in real estate valuation refers to:
- An appraisal conducted for a federally related transaction must be performed by a:
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