David Saks: December 2009

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

Real Estate Practice : Lesson 453

                                                          #453

A home was built several years ago and was actually constructed without a functioning heat or air conditioning system.

If an appraiser were to use the cost depreciation approach he would refer to this exclusion of heat and air in the buildiong construction as external obsolescence.

Is this fact true or false ?

Take your time. The solution is posted below the royalty free wildlife photo.

wildlife

A. False

The absence of heat and air is considered functional obsolescence whicch would result in loss of value because of outdated construction or design.

External obsolescence is a loss of value which occurs as a result of factors which occur outside of property, such as a property located adjacent to an abandoned factory building.

External obsolescence may also be referred to as 'external inadequacy' or economic obsolescence'.

 




David Saks



Time&Temp Memphis

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Comment balloon 0 commentsDavid Saks • December 14 2009 12:15PM
Real Estate Practice : Lesson 453
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#453 A home was built several years ago and was actually constructed without a functioning heat or air conditioning system. If an appraiser were to use the cost depreciation… more
Real Estate Practice : Lesson 452
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#452 An appraiser was contacted an asked to appraise a home. There have been quite a few sales in the area due to the recent economic climate and the lower of prices. The… more
Real Estate Practice : Lesson 451
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#451 If money is held before the acceptance of an offer of a sales contract for the purchase of a home, the money belongs to both the seller and the buyer. Is this true or false &… more
Real Estate Practice : Lesson 450
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#450 Sally defaulted on her mortgage and subsequently missed a few payments in the process. He lender had to begin the foreclosure process. Before the foreclosure slae took… more
Real Estate Practice : Lesson 449
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#449 If a buyer gives a deposit check to a broker it can be held by the broker and retained contingent upon the rejection or acceptance of a buyer's offer. Is this fact true or… more
Real Estate Practice : Lesson 448
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#448 Money may be given to a broker to hold in trust or escrow for a buyer to pay for a home inspection. Is this true or false Take your time. The solution is posted below the… more
Real Estate Practice : Lesson 447
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#447 If the commission rate a listing broker has with a seller becomes a source of contention between the seller and the broker, the broker can change the commission structure at will… more
Real Estate Practice : Lesson 446
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#446 Any time a seller or buyer wants to create an agency relationship with a broker all the principal has to do is agree to the agency relationship orally. It actually doesn't have to… more
Real Estate Practice : Lesson 445
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#445 A house sits on top of a hill not far from the city landfill. You can see the dump trucks in the destance, but a nice forest is nearby. The agent says to the buyer,.. more
Real Estate Practice : Lesson 444
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#444 Any time a broker takes a listing the seller has given the broker the right to enter into a firm contract on behalf of the seller and decide the selling price if the seller can't decide. … more