Property Valuation
In Tennessee, which of the following would be considered 'external obsolescence' in the cost approach?
AA worn-out HVAC system that needs replacement
BA floor plan with a bedroom accessible only through another bedroom
CA nearby industrial facility that causes noise and odor affecting nearby residential values✓ Correct
DOutdated kitchen fixtures in a 20-year-old home
Explanation
External (economic) obsolescence results from factors outside the property — such as a nearby industrial facility causing nuisance. It is always considered incurable because the property owner cannot control the external cause.
Related Tennessee Property Valuation Questions
- In Tennessee, which of the following factors would increase property value according to the principle of conformity?
- An appraiser using the sales comparison approach finds a comparable sale with a garage that the subject property lacks. The appraiser would make a:
- Comparative Market Analysis (CMA) is typically prepared by a:
- Economic life of a building is defined as:
- A site that is physically and legally unsuitable for the proposed highest and best use is said to lack:
- When an appraiser uses the direct comparison approach, the final value indication is most influenced by:
- The principle of conformity states that value is maximized when:
- When a comparable sale was distressed (sold in foreclosure at below-market price), an appraiser should:
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