Property Valuation
External obsolescence differs from functional obsolescence in that external obsolescence:
AIs caused by deficiencies within the property itself
BIs caused by factors outside the property's boundaries✓ Correct
CCan always be cured at a reasonable cost
DOnly applies to commercial properties
Explanation
External obsolescence (economic obsolescence) is caused by factors outside the property — such as proximity to a negative land use, economic decline in the area, or changes in zoning. It is almost always incurable because the owner cannot control external conditions.
Related Oklahoma Property Valuation Questions
- A Comparative Market Analysis (CMA) performed by an Oklahoma real estate agent differs from a formal appraisal in that:
- The principle of substitution states that:
- Accrued depreciation in the cost approach to appraisal is the sum of:
- Principles of value state that value is created by the interaction of supply and demand. Which principle holds that value is influenced by what a prudent buyer would pay for a similar property?
- When an Oklahoma appraisal is being performed for estate tax purposes, the relevant date of value is:
- Market value in real estate appraisal is defined as:
- An Oklahoma property's value is depressed because the neighborhood is transitioning from residential to commercial use. This is an example of which type of depreciation?
- The income capitalization approach to value is most appropriate for valuing:
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →