Property Valuation
Which type of depreciation is considered incurable by the property owner?
APhysical deterioration from deferred maintenance
BFunctional obsolescence from an outdated floor plan
CExternal (economic) obsolescence from a nearby highway✓ Correct
DPhysical deterioration from normal wear and tear
Explanation
External (economic) obsolescence is caused by factors outside the property, such as a new nearby highway, industrial facility, or neighborhood decline. It is considered incurable because the property owner cannot correct the external cause. Physical deterioration and functional obsolescence can often be cured.
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