Valuation & AppraisalQuestion 104 of 120
Which factor would most likely cause economic (external) obsolescence?
a.An outdated kitchen layout inside the home
b.Construction of a noisy airport expansion adjacent to the property
c.A cracked driveway on the property
d.Worn interior carpeting
Explanation
Economic or external obsolescence results from negative influences outside the property, such as a new airport, highway, or industrial use nearby. Because these factors are beyond the owner's control, this depreciation is usually incurable. Internal issues like layout or carpeting are functional or physical in nature.
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Related questions on this topic
- A comparative market analysis (CMA) prepared by a licensee differs from a formal appraisal because it:
- Accrued depreciation in the cost approach represents:
- Market value, as used in appraisal, generally assumes:
- Which of the following is a form of physical deterioration in an appraisal?
- The 'gross rent multiplier' (GRM) is calculated by:
- An appraiser reconciling the results of the three approaches to value will:
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