How is "economic obsolescence" typically regarded by appraisers?

Economic obsolescence is viewed by appraisers as an incurable condition resulting from external factors that negatively impact property value. This type of obsolescence is not caused by the physical attributes of the property itself but rather by influences such as changes in the economy, neighborhood decline, or shifts in local market demand. These external factors can lead to a long-term decline in property desirability and value.

Since economic obsolescence arises from forces outside the property owner’s control, it is considered incurable, meaning that appraisers typically cannot pinpoint a solution or renovation that would reverse the impact. This concept plays a crucial role in property valuation, as appraisers must account for such factors when determining the overall worth of a property, making it essential to recognize the permanence of the effect. Understanding economic obsolescence helps appraisers provide a more accurate assessment of a property's value in the context of its environment.