that which reduces the functionality or desirability of a property.Economic obsolescence often as the result of laws which affect real estate property rights or is the result of changes in the use of the property or changes in demand. This is one of the risks of buying foreclosed properties.To lessen this risk, investors interested in foreclosure properties will want to research to make sure that there are no pending laws or economic changes which can affect their investment.
The economic depreciation of a property due to undesirable changes outside the property (e.g., busy streets, proximity to an airport, or high power lines.)
A loss of property value, normally incurable, resulting from factors outside the property itself, such as social, economic, or environmental forces.
Loss in remaining value due to reasons external to the property. (See section on "depreciation," especially graphic depiction, within this study manual.)
Loss in value of a property that stems from factors external to the property.
Loss in value due to inappropriate location.
A fall in your property value due to factors out of your control. For example when a rubbish dump is built next door.
The loss incurred when the depreciated value of the improvements, from a cost perspective, is more than the market value.
loss in value of a property(relative to the cost of replacing it with a property of equal utility) as a result of impairment in utility and desirability caused by factors external to the property(outside a property's boundaries) and is generally deemed incurable. Examples might include air and/or noise pollution, heavy traffic, zoning regulations or neighborhood decline.
Loss of useful life and desirability of a property through economic forces, such as change in zoning, changes in traffic flow, etc., rather than deterioration.
(See external obsolescence)
The loss in value to property due to external causes such as zoning or a deteriorating neighborhood. It is also referred to as social obsolescence. Back to the Top
A decline in the market value of property due to any external influence, such as zoning regulations or a deteriorating neighbourhood. Apart from circumstances mentioned, buildings, which are unsuitable due to design or generally inadequate to suit current requirements, will suffer from economic obsolescence.
Depreciation; the rction in value of real property caused by extrinsic factors such as a declining neighborhood, a factory closure, or unsuitable zoning.
Loss of value of real property due to external forces or events; e.g.., a sewer plant is built next door to the subject property.
The loss of value caused by changes outside of the particular property. Could result from economic, social or environmental forces such as zoning changes, proximity to a new airport, etc.
See economic depreciation.
Impairment of desirability or useful life arising from economic forces, such as changes in optimum land use, a legislative enactment which restrict or impair property rights, and changes in supply-demand relationships.
The loss of value due to changes in the neighborhood in which a property is located or surrounding areas. (e.g., high power lines, busy streets, proximity to an airport or any other structure perceived to be less than desirable); also called economic depreciation.