A value loss that occurs because of factors external to the property. Economic obsolescence (sometimes referred to locational, external, or environmental obsolescence) is a value loss associated with detrimental or inharmonious nearby land uses which detract from the subject property’s appeal, utility, marketability, and consequently, its value.
Some common examples:
Properties adversely affected by take-offs and landings at a nearby airport.
Properties adversely affected by odors from an adjacent or nearby land fill.
Properties adversely affected by proximity to noise from highway traffic.
Note that in each instance, the source of the loss in value is outside the boundaries of the property being appraised. Although technically, there may be some instances where economic obsolescence may be curable, it is generally considered to be incurable.