What type of obsolescence results from external factors affecting the property's desirability?

Obsolescence resulting from external factors that affect a property's desirability is classified as external obsolescence. This type of obsolescence occurs due to influences outside the property that can reduce its value. Examples of external factors include changes in the local economy, the arrival of undesirable neighbors, or increased traffic congestion in the area.

Understanding external obsolescence is crucial in property appraisal, as it highlights how location and surrounding environment significantly impact property values. This contrasts with functional obsolescence, which refers to issues inherent to the property itself, such as outdated designs or poor layout. Curable and incurable obsolescence refer to whether the negative factors can be fixed or not, but they do not specifically denote the external nature of those influences. Thus, identifying external obsolescence helps appraisers accurately assess how outside conditions can diminish a property's appeal and market value.