Property Valuation

In Michigan, 'detrimental conditions' near a property (e.g., landfill, power lines, busy highway) affect value through:

AOnly zoning restrictions, not market value
BExternal (economic) obsolescence—a loss in value from factors outside the property✓ Correct
CFunctional obsolescence within the building
DPhysical depreciation of the structure

Explanation

Adverse external conditions (landfill odors, power line visual impact, highway noise) cause external/economic obsolescence—a reduction in the property's market value due to factors outside the boundaries of the property that the owner cannot control.

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