Property Valuation

When appraising a Jackson Hole property, the appraiser notes that the property is located in a flood zone. This would be reflected as:

AAn upward adjustment in the sales comparison approach
BA downward adjustment or indication of external obsolescence✓ Correct
CNo adjustment; flood zones don't affect value in Wyoming
DA positive feature for fishing enthusiasts

Explanation

Properties in flood zones typically require flood insurance (an additional cost), face development restrictions, and may have limited financing options. These factors negatively impact value and would be reflected as a negative adjustment or external obsolescence in the appraisal.

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