Property Valuation
A NJ appraiser reviewing a property in a flood zone must consider which of the following as a form of external obsolescence?
AThe property's outdated kitchen design
BThe flood zone designation, which reduces marketability and requires flood insurance✓ Correct
CThe age of the roof
DThe lack of a garage
Explanation
External (economic) obsolescence arises from factors outside the property itself. A flood zone designation reduces marketability and requires buyers to purchase flood insurance, negatively affecting value. This is a form of incurable external obsolescence in the cost approach.
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