Property Valuation
In a South Dakota appraisal, 'economic obsolescence' (external obsolescence) is caused by:
APhysical deterioration from deferred maintenance
BOutdated floor plans or design features
CFactors external to the property, such as nearby industrial development or economic decline of the neighborhood✓ Correct
DOver-improvement of the property relative to the neighborhood
Explanation
Economic (external) obsolescence is a loss in value caused by factors outside the property itself, such as nearby highway construction, industrial development, neighborhood decline, or changes in zoning. It is typically incurable because the property owner cannot control the external factors.
Related South Dakota Property Valuation Questions
- A South Dakota appraisal is performed for a federally related transaction. The appraiser must comply with:
- Which principle of value states that the value of a property is affected by the values of surrounding properties in South Dakota?
- The cost approach to value is most useful for appraising:
- In the sales comparison approach to value, an appraiser makes adjustments to comparable sales for differences between the comparable and the subject property. If a comparable sale has a feature the subject property lacks, the appraiser should:
- Functional obsolescence in real estate refers to:
- Which type of depreciation is generally considered curable in a South Dakota appraisal?
- In South Dakota appraisal practice, the term 'as-is value' means:
- In South Dakota, 'market rent' versus 'contract rent' is important to appraisers because:
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