Property Valuation
External obsolescence affecting a Pennsylvania property's value is best described as:
AA leaky roof that can be repaired at a reasonable cost
BAn outdated single-bathroom layout in a four-bedroom home
CLoss in value caused by factors outside the property such as a new industrial facility or highway nearby✓ Correct
DTax depreciation calculated under IRS rules for income-producing investment properties
Explanation
External or economic obsolescence is value loss caused by negative factors outside the property's boundaries — a new noisy highway, nearby industrial plant, neighborhood decline, or loss of major local employers. Because it originates externally, it is always incurable; the property owner cannot correct it unilaterally. Pennsylvania appraisers identify external obsolescence through paired sales analysis, comparing similarly improved properties with and without the negative external influence to quantify the value impact.
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