Property Valuation (alternative)
A Maryland appraiser finds that a nearby commercial facility has reduced a residential property's value by $20,000. This is an example of:
APhysical deterioration (alternative)
BFunctional obsolescence (alternative)
CExternal (economic) obsolescence✓ Correct
DCurable depreciation
Explanation
Loss in value caused by external factors (nearby commercial or industrial uses, highway noise, environmental contamination, neighborhood decline) is external or economic obsolescence.
Related Maryland Property Valuation (alternative) Questions
- When appraising a Maryland property, which factor makes a comparable sale the LEAST useful?
- In Maryland, the term 'as-improved' value in an appraisal means:
- The 'economic rent' of a property exceeds the 'contract rent' when:
- A Maryland appraiser notes that the subject property has a 'superadequacy.' This means the property has:
- In Maryland appraisal, 'market conditions' adjustment to comparable sales reflects:
- In Maryland, the 'economic rent' of a property refers to:
- In Maryland, the principle of 'balance' in appraisal theory states that:
- In Maryland, a broker price opinion (BPO) or comparative market analysis (CMA):
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →