Property Valuation
In South Dakota, which of the following would cause a DECREASE in a property's market value, all else being equal?
AImprovement of the local school district's ratings
BConstruction of a new highway adjacent to a quiet residential neighborhood✓ Correct
CDecrease in mortgage interest rates
DNew major employer locating in the area
Explanation
Construction of a highway adjacent to a residential neighborhood typically causes a decrease in property values due to noise, traffic, air quality impacts, and visual intrusion. This is an example of external (economic) obsolescence from a negative externality.
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