Property Valuation
External obsolescence (also called economic obsolescence) in a Kentucky property may be caused by:
AA leaking roof that reduces property value
BA floor plan that is outdated and unappealing to buyers
CA nearby factory that creates noise and odor✓ Correct
DAn older HVAC system approaching end of life
Explanation
External obsolescence results from factors outside the property itself, such as nearby industrial uses, traffic noise, economic decline in the area, or other environmental factors. It is generally incurable because the owner cannot control the external cause.
Related Kentucky Property Valuation Questions
- The principle of anticipation in real estate valuation states that:
- A Kentucky appraiser who discovers that a comparable sale price was influenced by unusual financing (such as a seller concession of 10% of price) should:
- Which type of property would most likely be appraised using the income approach?
- The term 'highest and best use' means the use that is:
- A Kentucky appraiser who determines a property's value is below the contracted purchase price should:
- The gross income multiplier (GIM) used in commercial property valuation is calculated as:
- In the sales comparison approach, the appraiser makes adjustments to the comparable sales to account for:
- A Kentucky appraiser determines that a property's highest and best use is a small office building, but the current use is a single-family home. The difference in value between the current use and the highest and best use represents:
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