What might an appraiser recommend to mitigate economic obsolescence?

An appraiser might recommend addressing underlying neighborhood issues to mitigate economic obsolescence because this form of obsolescence arises from factors outside the property itself, often related to the overall economic health of the neighborhood or local market. Economic obsolescence can be influenced by things like crime rates, declining property values in the area, or the presence of undesirable developments nearby, such as industrial facilities or vacant properties.

By tackling these neighborhood problems, an owner can potentially increase the appeal of the area and, subsequently, the value of the property. This may involve community engagement efforts, advocating for local improvements, or collaborating with government entities to initiate revitalization projects. In contrast, increasing insurance coverage, investing solely in marketing, or focusing only on aesthetic changes inside the property may not effectively address the external factors contributing to economic obsolescence.