Property Valuation
In North Dakota, which of the following BEST illustrates 'external (economic) obsolescence'?
AA home with a poor floor plan
BA residential neighborhood's declining values due to the expansion of a nearby industrial zone✓ Correct
CPhysical wear on the roof of a home
DAn outdated electrical system in a commercial building
Explanation
External obsolescence is caused by factors outside the property's boundaries that reduce its value, such as proximity to industrial uses, declining neighborhoods, or economic downturns. It is typically incurable by the property owner.
Related North Dakota Property Valuation Questions
- In the cost approach to value, reproduction cost differs from replacement cost because:
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