Arizona Real Estate License Practice Exam 2026 – All-in-One Resource to Pass with Confidence!

Question: 1 / 1505

In appraisal terminology, "A factory too close to a home" is an example of what?

Incurable obsolescence

In appraisal terminology, the phrase "a factory too close to a home" is referred to as incurable obsolescence because it relates to external factors that negatively impact a property's value, but cannot be changed or corrected without significant cost or effort. This type of obsolescence arises from conditions outside the property boundaries, such as noise, pollution, or undesirable visual elements, which detract from the property's desirability.

Incurable obsolescence reflects that the issue cannot be remedied or is not financially feasible to fix, thus permanently affecting the marketability and value of the home. The presence of an industrial facility close to residential properties often creates a negative stigma that is unlikely to improve or be mitigated over time, making it a classic example of this type of obsolescence. Understanding this concept is crucial for real estate appraisers who must evaluate how external factors influence property values in the market.

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Curable economic obsolescence

Curable physical deterioration

Functional obsolescence

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