Property Valuation
Economic (external) obsolescence differs from functional obsolescence because it is:
AAlways curable
BCaused by factors outside the property itself and is typically incurable✓ Correct
CRelated to the physical condition of the building
DCaused by poor floor plan design
Explanation
Economic (external) obsolescence results from factors outside the property—such as a new highway nearby, industrial encroachment, or neighborhood decline—and is generally incurable by the property owner.
Related New Jersey Property Valuation Questions
- The principle of conformity states that property values are maximized when:
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- In New Jersey, a 'drive-by appraisal' or 'exterior-only appraisal' provides:
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