Property Valuation
When Pennsylvania property values in a neighborhood are declining due to economic factors, an appraiser noting this would classify it as:
ACurable physical deterioration
BExternal (economic) obsolescence✓ Correct
CFunctional obsolescence
DNormal depreciation
Explanation
External obsolescence (economic obsolescence) arises from factors outside the property — neighborhood decline, economic downturns, adverse changes in land use, or market oversupply. It is typically incurable by the property owner and must be reflected in the appraisal as depreciation.
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