Property Valuation
A Maine appraiser notes that houses in a neighborhood are declining in value due to an increase in commercial development nearby. This is an example of:
AFunctional obsolescence
BPhysical depreciation
CExternal (economic) obsolescence✓ Correct
DLocational depreciation
Explanation
External (economic) obsolescence is a loss in value caused by factors outside the property, such as nearby commercial development, highway construction, or neighborhood decline. It is generally incurable.
Related Maine Property Valuation Questions
- An appraiser in Maine is determining the assessed value of a property. The municipality uses an assessment ratio of 80%. If the market value is $350,000, what is the assessed value?
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