Property Ownership

A South Carolina home seller learns that a nearby commercial development will reduce the neighborhood's desirability. This type of value impact is called:

APhysical deterioration
BExternal (economic) obsolescence✓ Correct
CFunctional obsolescence
DDeferred maintenance

Explanation

External (economic) obsolescence is caused by factors outside the property, such as nearby commercial development, traffic increases, or economic decline. It is typically incurable and reduces property value.

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