Property Valuation Financial AnalysisValuation_financial_analysisMEDIUM
A property's value decreased because a noisy highway was built nearby. This is an example of:
Correct Answer
C) Economic (external) obsolescence
Economic or external obsolescence is loss of value due to factors outside the property, such as environmental changes, economic conditions, or neighborhood changes.
Answer Options
A
Physical depreciationB
Functional obsolescenceC
Economic (external) obsolescenceD
Curable depreciationVideo Explanation3 min
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Related Topics & Key Terms
Related Topics:
property-valuation-methodstypes-of-depreciationappraisal-approaches
Key Terms:
economic obsolescenceexternal obsolescencedepreciationCost Approachincurable depreciation
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