Property Valuation
Which of the following is an example of external (economic) obsolescence in an Illinois property?
AAn outdated kitchen design in a home
BDeferred maintenance on the roof
CA new highway built adjacent to a residential neighborhood causing noise and decreased desirability✓ Correct
DA too-small garage for the neighborhood
Explanation
External (economic) obsolescence is a loss of value caused by factors outside the property itself—such as a new highway, industrial facility, or declining neighborhood. A new highway causing noise, traffic, and decreased desirability is a classic example. External obsolescence is always considered incurable (the property owner cannot fix external conditions), making it particularly significant in appraisals.
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