What is a common factor used to measure external obsolescence?

Measuring external obsolescence involves evaluating factors that negatively impact a property's value but are beyond the property owner's control. Neighborhood conditions are a primary factor in this assessment. They can include aspects such as crime rates, proximity to undesirable facilities (like landfills or highways), and overall community reputation.

These external conditions can diminish a property's appeal and market value, even if the property itself is in good condition. For instance, if a neighborhood experiences an influx of crime or a decline in economic activity, it may lead to decreased demand for properties in that area, resulting in lower property values.

While market trends might influence property values, they do not specifically measure the detriment resulting from external factors. Actual construction costs pertain more to the direct expenses incurred during the building process, which do not reflect ongoing external conditions affecting value. Physical wear relates to the depreciation of the property's physical structure itself and is more aligned with internal obsolescence rather than external factors.