Property Valuation
External obsolescence (also called economic obsolescence) is unique because it is:
AThe most common form of depreciation in new construction
BGenerally incurable and caused by factors outside the property✓ Correct
CAlways caused by physical deterioration
DIncluded in the cost approach but not the sales comparison approach
Explanation
External obsolescence is caused by factors outside the property—such as nearby industrial development, economic decline, or location issues—and is generally incurable because the owner cannot control the external factors causing the loss in value.
Related Utah Property Valuation Questions
- Functional obsolescence in property valuation refers to:
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- The most common appraisal approach used for single-family homes in the Wasatch Front area (Salt Lake City, Provo, Ogden) is:
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