Property Valuation
What is 'external obsolescence' and what is an example relevant to Idaho?
ADeterioration of the building's exterior; example is peeling paint
BA loss in value caused by factors outside the property itself; example is a new highway built adjacent to a residential neighborhood✓ Correct
CDepreciation from outdated interior design
DLoss in value from changing architectural styles
Explanation
External obsolescence (also called economic or locational obsolescence) results from factors outside the property — neighborhood decline, nearby nuisances, economic recession, or infrastructure changes. In Idaho, examples include a new industrial facility near residential property, highway expansion, or a new transmission line adjacent to a subdivision.
Related Idaho Property Valuation Questions
- What is 'eminent domain appraisal' in Idaho?
- In Idaho, which government body certifies and licenses real estate appraisers?
- The principle of 'conformity' in appraisal holds that:
- The income capitalization approach is MOST appropriate for valuing:
- The capitalization rate (cap rate) reflects:
- What type of depreciation is considered 'incurable' in an appraisal?
- When calculating potential gross income for a rental property, an appraiser assumes:
- In Idaho, who is authorized to perform appraisals of real estate for federally related transactions?
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