Property Valuation
Which type of depreciation results from factors external to a property, such as a new industrial facility built near a residential neighborhood?
APhysical deterioration
BFunctional obsolescence
CExternal (economic) obsolescence✓ Correct
DDeferred maintenance
Explanation
External (economic) obsolescence results from factors outside the property, such as nearby nuisances, declining neighborhoods, or adverse economic conditions. It is generally incurable.
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