Property Valuation
External obsolescence differs from functional obsolescence in that external obsolescence is caused by:
APoor interior design choices by the owner
BOutdated mechanical systems within the building
CFactors outside the property, such as a nearby nuisance or neighborhood decline✓ Correct
DPhysical wear and tear from years of use
Explanation
External (economic) obsolescence is caused by conditions outside the property boundaries, such as nearby industrial activity, traffic, neighborhood decline, or an oversupply of competing properties. Unlike physical deterioration or functional obsolescence, external obsolescence is generally incurable by the property owner.
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