Property Valuation
In South Dakota, 'external obsolescence' in an appraisal is characterized as:
ACurable depreciation from deferred maintenance
BLoss in value caused by factors outside the property boundaries, such as neighborhood decline or economic factors✓ Correct
CPhysical deterioration from use and aging
DFunctional design deficiencies in the structure
Explanation
External (economic) obsolescence is caused by factors outside the property — neighborhood decline, proximity to nuisances, economic downturns, or changes in land use regulations. It is generally considered incurable because the property owner cannot control the external causes.
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