Property Valuation
External obsolescence differs from functional obsolescence because external obsolescence is caused by:
AOutdated building systems within the property
BFactors outside the property such as neighborhood decline or economic conditions✓ Correct
CPhysical deterioration of the building's roof
DAn oversized house in a neighborhood of smaller homes
Explanation
External (economic) obsolescence results from factors outside the property — such as a nearby industrial facility, traffic changes, or neighborhood decline — and is generally incurable.
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