Property Valuation
A Minnesota appraiser is valuing a property that has been impacted by a nuisance (loud neighboring business). How is this reflected in the appraisal?
AIt is not considered since it is not a physical property condition
BAs external obsolescence, reducing the property's market value✓ Correct
CAs functional obsolescence, requiring a cost estimate
DAs physical deterioration requiring a repair cost deduction
Explanation
The impact of a neighboring nuisance (noise, odor, traffic) on a property's value is classified as external (economic) obsolescence in appraisal terminology. It represents a loss in value due to factors outside the property. Minnesota appraisers estimate external obsolescence through market analysis comparing affected and unaffected properties.
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