Which of the following is an example of external obsolescence that is particularly relevant in Iowa's real estate market?
Correct Answer
B) A nearby confined animal feeding operation (CAFO) reducing surrounding residential property values
External obsolescence is a loss in property value caused by negative forces outside the property itself, making it incurable by the property owner. In Iowa, large-scale confined animal feeding operations (CAFOs) are a well-recognized source of external obsolescence because they can generate persistent odors, increased truck traffic, and environmental concerns that reduce the desirability and market value of nearby residential properties. Worn carpet (option A) is physical deterioration, an outdated kitchen (option C) is functional obsolescence, and a roof leak (option D) is physical deterioration — all of which are internal to the property.
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