Property Valuation
A Kentucky residential property's value is depressed because it is located next to a busy commercial truck stop. This is an example of:
APhysical depreciation
BExternal (economic) obsolescence✓ Correct
CFunctional obsolescence
DCurable physical deterioration
Explanation
External (economic) obsolescence is a loss in value caused by factors outside the property, such as a noisy truck stop, industrial activity, or adverse neighborhood conditions that reduce desirability.
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