Property Valuation
What is 'economic obsolescence' and how might it affect a Pennsylvania property's value?
APhysical deterioration caused by deferred maintenance that reduces value
BValue loss caused by factors outside the property, such as a new highway or industrial facility nearby✓ Correct
COutdated floor plans or features that make the property functionally inferior
DDepreciation taken on income properties for tax purposes
Explanation
Economic (external) obsolescence is value loss caused by factors outside the property's boundaries — such as a new highway causing noise and traffic, a new industrial facility bringing odors or truck traffic, neighborhood decline, or adverse zoning changes. Unlike physical or functional depreciation, economic obsolescence cannot be cured by the property owner, making it particularly impactful on Pennsylvania properties near major infrastructure projects.
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