Property Valuation
A Nebraska appraiser identifies an external obsolescence affecting a residential property near a newly constructed highway. External obsolescence is:
AAlways curable
BPhysical deterioration from outside forces
CA loss in value from outside the property — incurable by the owner✓ Correct
DOnly applicable to commercial properties
Explanation
External (economic or environmental) obsolescence is a loss in value caused by factors outside the property boundaries — like a nearby highway, industrial facility, or adverse neighborhood conditions. It is incurable by the property owner.
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