Property Valuation
External obsolescence in appraisal refers to:
AWorn-out mechanical systems
BOutdated floor plan or design
CLoss in value from factors outside the property such as nearby industrial use✓ Correct
DPhysical damage from natural events
Explanation
External (economic) obsolescence is caused by factors outside the property's boundaries, such as proximity to a landfill, highway noise, or neighborhood decline. It is generally incurable.
Related Michigan Property Valuation Questions
- In Michigan, a 'stabilized occupancy' assumption in an income appraisal means the appraiser:
- A Michigan appraiser uses three comparable sales to estimate value. After adjustments, the comps indicate values of $312,000, $318,000, and $315,500. The appraiser would most likely conclude a value of approximately:
- In Michigan, a property's 'taxable value' can never exceed its:
- When a Michigan appraiser finds a 'negative adjustment' is needed for a comparable sale, it means the comparable is:
- In Michigan, an appraiser's 'scope of work' for an appraisal is determined by:
- In Michigan, a 'restricted appraisal report' under USPAP is intended for:
- In Michigan, an appraiser's 'reconciliation' at the end of an appraisal report involves:
- When appraising Michigan lakefront property, which factor would an appraiser consider as adding the most value?
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →