====== Obsolescence ======

**Obsolescence** is a **loss of property value** caused by factors that make a property **less desirable or less useful**.

===== Key Characteristics =====
  * A form of **depreciation**
  * Can be **curable or incurable**
  * May result from **internal or external** causes
  * Affects **market value**, not land value alone

===== Types of Obsolescence =====
  * **Functional Obsolescence**
    * Loss of value due to outdated or inadequate features
    * Examples: poor floor plan, outdated plumbing or wiring, lack of insulation
    * May be **curable or incurable**

  * **External (Economic) Obsolescence**
    * Loss of value caused by factors **outside the property**
    * Examples: nearby airport, freeway, pollution, zoning changes, declining neighborhood
    * Almost always **incurable**

===== Curable vs Incurable =====
  * **Curable Obsolescence**
    * Cost to fix is **less than** the value added
    * Example: replacing outdated fixtures

  * **Incurable Obsolescence**
    * Cost to fix is **greater than** value added
    * Example: poor location near an industrial site

===== Exam Tip =====
  * External obsolescence is **never caused by the owner**
  * Land does **not** suffer obsolescence, only improvements