Property Valuation
Economic (external) obsolescence is best described as a loss in value due to:
ADeferred maintenance on the subject property
BAn outdated floor plan or design
CFactors outside the property, such as a nearby highway or declining neighborhood✓ Correct
DSoil contamination beneath the structure
Explanation
Economic (external) obsolescence is caused by factors outside the property, such as proximity to a noisy highway, industrial use nearby, declining neighborhood, or adverse economic conditions. It is generally incurable because the owner cannot control external factors.
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