Property Valuation
External obsolescence (economic obsolescence) is caused by:
APhysical wear and tear on the property
BOutdated building systems within the property
CFactors outside the property such as a new highway, neighborhood decline, or economic downturn✓ Correct
DPoor quality of original construction
Explanation
External obsolescence results from factors outside the property that negatively impact its value, such as a nearby airport, industrial facility, highway construction, neighborhood decline, or broader economic downturns. Unlike other depreciation forms, it is generally incurable.
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