External Obsolescence

Last Updated: Jun 7, 2019

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External Obsolescence “is an element of depreciation; a defect, usually incurable, caused by negative influences outside a site and generally incurable on the part of the owner, landlord, or tenant.”¹

External obsolescence is a factor that decreases the value of an improvement because of something external to the property itself. It’s not about whether the house is outdated or not, but rather something outside of the home that cannot be cured, is driving the lower value.

¹ The Dictionary of Real Estate Appraisal, 4th Edition, Appraisal Institute, 2002, Page 106