Property Valuation
Economic obsolescence (external obsolescence) in a Montana property context would best be illustrated by:
AA roof that is 30 years old and needs replacement
BA 3-bedroom home with only 1 bathroom in a market requiring 2 bathrooms
CA home near a newly constructed highway that creates significant noise and reduced value✓ Correct
DAn outdated kitchen with original 1970s fixtures
Explanation
Economic (external) obsolescence results from factors outside the property itself—such as a new highway, industrial facility, or economic decline in an area—that negatively impact value. It is typically incurable because the cause is beyond the owner's control.
Related Montana Property Valuation Questions
- The 'principle of conformity' in Montana real estate appraisal suggests that property values are maximized when:
- The principle of substitution states that:
- Depreciation in real estate appraisal refers to:
- Appreciation in real estate value is most directly influenced by:
- An appraiser performing a drive-by or desktop appraisal for a Montana lender is providing a:
- An appraiser's value opinion represents:
- Gross rent multiplier (GRM) is calculated as:
- In Montana, the 'land residual technique' in appraisal is used to:
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