Property Valuation
An appraiser determines that a NH property suffers from external (economic) obsolescence because:
AThe roof needs replacement
BThe kitchen is outdated with only one bathroom
CA major employer recently closed, depressing property values in the area✓ Correct
DThe property lacks a two-car garage
Explanation
External (economic) obsolescence is value loss caused by factors outside the property—beyond the owner's control—such as nearby nuisances, unfavorable market conditions, or economic factors like a major employer closing. Unlike physical or functional obsolescence, external obsolescence is incurable.
Related New Hampshire Property Valuation Questions
- What does 'effective age' mean in a real estate appraisal?
- When comparing NH residential properties for the sales comparison approach, an appraiser should use comparables that:
- When comparing two properties in the same Manchester, NH neighborhood, an appraiser adjusts for the fact that one sold 18 months ago while the other sold last month. This is called a:
- When appraising a New Hampshire property, the appraiser must consider whether the property's current use is the highest and best use. If not, the appraiser must:
- The appraisal approach most commonly used for valuing single-family homes in New Hampshire's Manchester and Nashua markets is:
- The income capitalization approach divides net operating income by the capitalization rate to arrive at:
- Which of the following would be classified as functional obsolescence in a property appraisal?
- External (economic) obsolescence in real estate valuation is caused by:
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