Property Valuation
Which of the following is an example of economic (external) obsolescence in a residential property?
AA cracked driveway requiring replacement
BA bathroom with only one sink when two-sink bathrooms are now standard
CA significant increase in commercial truck traffic on the street after the property was built✓ Correct
DPaint that needs to be refreshed
Explanation
Increased commercial truck traffic (an external factor) reduces the property's desirability for residential use, constituting external (economic) obsolescence. Physical deterioration (cracked driveway, peeling paint) and functional obsolescence (outdated bathroom) arise from the property itself, not external conditions.
Related Illinois Property Valuation Questions
- What is 'effective gross income' (EGI) in income property analysis?
- Which of the following would indicate that a neighborhood is in the 'decline' phase of the neighborhood life cycle?
- A gross rent multiplier (GRM) of 120 is applied to a property with monthly rent of $2,500. What is the estimated value?
- In the sales comparison approach, a gross living area (GLA) adjustment is made because:
- In the cost approach to value, the formula for determining value is:
- When performing a comparative market analysis (CMA), a real estate agent is providing:
- What is 'depreciation' for tax purposes and how does it differ from appraisal depreciation?
- What is 'assessed value' versus 'market value' in Illinois property taxation?
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →