Property Valuation
External obsolescence (economic obsolescence) in appraisal refers to loss in value caused by:
ADeferred maintenance on the subject property
BOutdated floor plan or design features
CFactors outside the property such as nearby nuisances or neighborhood decline✓ Correct
DStructural deterioration of the building
Explanation
External (economic) obsolescence results from factors outside the property's boundaries — such as a nearby landfill, airport noise, economic decline in the area, or changes in zoning — and is generally incurable.
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