Property Valuation

External obsolescence in Vermont real estate valuation could be caused by which of the following?

AAn outdated kitchen in a single-family home
BConstruction of a commercial facility near a residential neighborhood that negatively affects home values✓ Correct
CA leaking roof from deferred maintenance
DAn inefficient floor plan in an older home

Explanation

External (or economic) obsolescence is a loss in value caused by factors outside the property itself, such as nearby commercial development, highway construction, changes in neighborhood character, or economic decline in the area. Unlike physical and functional obsolescence, it is usually incurable.

Related Vermont Property Valuation Questions

Practice More Vermont Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Vermont Quiz →