Property Valuation

In South Dakota, which type of depreciation in the cost approach is considered 'incurable'?

ADeferred maintenance that can be fixed at a cost less than the value it adds
BPhysical deterioration from normal wear that can be repaired
CExternal obsolescence caused by factors outside the property✓ Correct
DFunctional obsolescence caused by outdated fixtures that can be upgraded

Explanation

External (economic) obsolescence is generally considered incurable because the causes are outside the property — such as nearby industrial development, highway construction, or neighborhood decline. The property owner cannot cure these external factors.

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