Property Valuation
What is 'external obsolescence' in Oregon real estate appraisal?
APhysical decay from weather exposure on the building exterior
BA loss in value caused by factors outside the property, such as nearby industrial uses, traffic, or neighborhood decline✓ Correct
CThe outdated design of the exterior facade
DDepreciation caused by poor landscaping choices
Explanation
External (or economic) obsolescence is depreciation caused by factors outside the property's boundaries, such as proximity to undesirable land uses (freeway, industrial plant), neighborhood decline, economic downturns, or changes in zoning. It is typically incurable since the owner cannot control external factors. It can significantly affect Oregon property values.
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