Property Valuation
External (economic) obsolescence differs from functional obsolescence in that:
AExternal obsolescence is curable while functional obsolescence is incurable
BExternal obsolescence results from factors outside the property, while functional obsolescence results from features within the property✓ Correct
CExternal obsolescence only affects commercial properties
DExternal obsolescence increases value while functional decreases it
Explanation
External (economic) obsolescence results from factors outside the property boundaries — such as a nearby industrial facility, economic decline in the area, or changing market conditions — and is generally considered incurable by the property owner.
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