Property Valuation
Which type of depreciation in the cost approach is considered incurable because it comes from outside the property?
APhysical deterioration
BFunctional obsolescence
CExternal obsolescence✓ Correct
DDeferred maintenance
Explanation
External (economic) obsolescence results from factors outside the property — such as a nearby industrial facility or neighborhood decline — and is generally considered incurable because the owner cannot control external conditions.
Related Georgia Property Valuation Questions
- Paired sales analysis is used in appraisal to:
- A Comparative Market Analysis (CMA) is prepared by a real estate agent primarily to help a seller determine:
- An appraisal that determines 'market value' estimates the price that:
- In an appraisal, a comparable sale that is superior to the subject property requires the appraiser to:
- The gross rent multiplier (GRM) is calculated by dividing the:
- An adjustable rate's 'index' in an ARM loan typically refers to:
- External (economic) obsolescence differs from functional obsolescence in that it is:
- A 'market value' definition in a appraisal context assumes:
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