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 Worn carpet (option A) is physical deterioration, an outdated kitchen (option C) is functional obsolescence, and a roof leak (option D) is physical deterioration — all of which are internal to the property.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
More Valuation Questions
In Utah, property taxes are collected by which governmental entity?
In Utah, how is a primary residence assessed for property tax purposes under the residential exemption?
Which of the following best describes how Utah's rapid population growth, driven partly by Silicon Slopes tech expansion, has affected housing affordability?
When appraising a property in Utah's Wasatch Front, which environmental hazard would an appraiser need to consider that is less common in most other states?
The rapid growth of the 'Silicon Slopes' tech corridor in Utah has most directly affected real estate in which area?
- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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