Property Valuation

External obsolescence as a form of depreciation in Iowa real property appraisal refers to:

AWorn-out roof shingles that need replacement
BA loss in value caused by factors outside the property, such as proximity to a new highway or industrial facility✓ Correct
CAn outdated floor plan that cannot be easily changed
DDeferred maintenance on the HVAC system

Explanation

External (economic) obsolescence is a loss in value caused by negative influences outside the property itself — such as a nearby feedlot, highway noise, or neighborhood decline — and is generally incurable by the property owner.

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