Property Valuation
Which type of depreciation affecting a property near a New York highway (due to traffic noise) is BEST classified as?
APhysical deterioration
BFunctional obsolescence
CExternal (economic) obsolescence✓ Correct
DDeferred maintenance
Explanation
External (economic) obsolescence results from factors outside the property itself, such as nearby highway noise, industrial activity, or economic decline of a neighborhood. It is generally incurable because the owner cannot correct the external condition.
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