Property Valuation
External obsolescence in real estate refers to depreciation caused by:
AWorn-out roof or plumbing
BAn outdated floor plan
CFactors outside the property such as nearby industrial development or traffic noise✓ Correct
DExcessive improvements beyond neighborhood norms
Explanation
External (economic) obsolescence is caused by factors outside the property's boundaries — such as a nearby highway, industrial facility, or neighborhood decline — and is generally incurable.
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