Property Valuation
External obsolescence (economic obsolescence) in appraisal refers to:
APhysical deterioration from deferred maintenance
BValue loss caused by factors outside the property, such as nearby land uses or economic conditions✓ Correct
COutdated interior features like avocado-green appliances
DDepreciation allowable for tax purposes
Explanation
External obsolescence is a loss in value caused by factors outside the property's boundaries — such as a nearby highway, industrial uses, or economic decline in the area. It is almost always incurable because the owner cannot control the external factors.
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