Property Valuation
When appraising a historic building in Boston's Back Bay, an appraiser notes that historic preservation restrictions reduce the property's marketability. This is an example of:
APhysical depreciation
BFunctional obsolescence
CExternal (economic) obsolescence✓ Correct
DSuperadequacy
Explanation
Historic preservation restrictions imposed from outside the property represent external (economic) obsolescence — a loss in value caused by factors outside the property itself. This is incurable depreciation because the owner cannot remove the restrictions.
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