Property Valuation
Which of the following is considered external (economic) obsolescence affecting property value?
AAn outdated kitchen that is cost-effective to remodel
BA structural crack in the foundation
CDecline in the neighborhood due to a nearby industrial facility opening✓ Correct
DA floor plan with poor traffic flow
Explanation
External (economic) obsolescence is a loss in value due to factors outside the property — such as neighborhood decline, proximity to a new highway or industrial facility, or adverse economic conditions. It is incurable because the owner cannot control external factors.
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