Property Valuation
External obsolescence (economic or locational obsolescence) in a West Virginia appraisal is caused by:
APhysical deterioration of the subject property's structure
BDesign features within the property that have become outdated
CFactors outside the property's boundaries, such as nearby environmental contamination or economic decline✓ Correct
DExcessive land value compared to improvement value
Explanation
External obsolescence is a loss in value caused by factors outside the property itself, such as nearby industrial development, traffic congestion, economic decline of the neighborhood, or environmental contamination.
Related West Virginia Property Valuation Questions
- An appraiser in West Virginia estimates the remaining economic life of a 20-year-old building is 40 years, with a total economic life of 60 years. The age-life depreciation percentage is:
- Functional obsolescence in a West Virginia property refers to:
- A West Virginia appraiser who omits negative information from an appraisal report to achieve a value requested by the lender is engaging in:
- In a West Virginia appraisal, the 'principle of substitution' supports which appraisal approach?
- In the income approach, a West Virginia appraiser uses an overall capitalization rate (OAR). A lower OAR applied to the same NOI results in a:
- The capitalization rate (cap rate) formula used to value income property in West Virginia is:
- A West Virginia appraiser's 'limiting conditions' in an appraisal report state that the appraiser assumes the property does not have undisclosed environmental contamination. This is an example of a:
- A West Virginia appraiser who is asked to update an old appraisal without visiting the property should:
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