Property Valuation
External (economic) obsolescence in real estate is characterized as:
ACurable because the owner can fix it
BIncurable because it originates outside the property✓ Correct
COnly affecting commercial properties
DCovered by the homeowner's insurance policy
Explanation
External obsolescence originates from forces outside the property (nearby highway, industrial rezoning, declining neighborhood) and is generally incurable by the property owner.
Related North Carolina Property Valuation Questions
- When appraising a single-family home in the Research Triangle Park area of NC, an appraiser gives MOST weight to which approach?
- The 'economic characteristics' of an income-producing property that affect its NC appraisal include:
- In the income approach, the 'overall capitalization rate' (OAR) differs from a 'mortgage capitalization rate' in that the OAR:
- When NC appraisers analyze a residential subdivision lot's value, which method do they typically use?
- When appraising a property in NC, the appraiser's opinion of value must reflect the value as of a specific:
- A NC appraisal that states the value 'as of' a specific date is reporting the property's value:
- A 'fee appraiser' in NC is different from an 'in-house' appraiser in that a fee appraiser:
- When appraising a property in the Outer Banks near the NC coast, an appraiser would consider 'functional utility' which includes:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →