Property Valuation
External (economic) obsolescence in real estate valuation is caused by:
APhysical deterioration of the property's structure
BOutdated floor plans or design features
CNegative influences outside the property such as nearby industrial use✓ Correct
DOwner neglect and deferred maintenance
Explanation
External obsolescence results from factors outside the property itself — nearby nuisances, neighborhood decline, rezoning of adjacent land, or economic factors — and is generally incurable by the owner.
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