Skip to content
Pass California

Valuation and Analysis, 14% of the examination

External obsolescence

Loss in value caused by an influence outside the property.

Examples include adverse traffic, nearby incompatible uses, or a weak local employment base. These causes are often beyond the owner's control, but that does not make every external influence permanently incurable. Functional obsolescence arises within the property.

See also

Functional obsolescenceLoss in value from a design or utility deficiency within the property, such as an outdated floor plan.

Test the distinction

A relevant question from Valuation and Analysis, selected because its facts or explanation use this concept.

Valuation and Analysis ยท 14%Methods of Estimating Value

A new airport flight path lowers values across a neighborhood. What kind of depreciation is this?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

Property Valuation and Financial AnalysisAll three official DRE valuation topics in one practical guide: value principles, the sales comparison, cost and income approaches, and the financial analysis that turns property data into a defensible answer.14%Practice Valuation and Analysis28 questions on this area, every option explained.Practice

Other terms in this area