Property Valuation
Economic obsolescence (external obsolescence) in an appraisal refers to:
AWorn-out systems within the property that need replacement
BAn outdated floor plan that cannot be easily changed
CA loss of value caused by factors outside the property, such as a nearby highway or declining neighborhood✓ Correct
DDeferred maintenance items observed during inspection
Explanation
External (economic) obsolescence is caused by factors outside the property boundaries — such as a new highway, heavy industrial development nearby, or broad economic decline. It is considered incurable because the owner cannot correct it.
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