Functional Or External Obsolescence?

[Ken B]

I think the chart in a previous post addressed that scenario. It's not an either/or situation, but can be both. A property owner has no control over off-site conditions. They have complete control of the relationship between an existing improvement and the perfect improvement for the site. Therein lies the difference.

 

[Eli]

I think the chart in a previous post addressed that scenario. It's not an either/or situation, but can be both. A property owner has no control over off-site conditions. They have complete control of the relationship between an existing improvement and the perfect improvement for the site. Therein lies the difference.

Makes one really contemplate whether obsolescence originates inside the site boundaries or outside the site boundaries and whether it is curable or incurable. I don't like the breakdown method. LOL

 

[Terrel L. Shields]

but the defect is on site

But the cause of the defect is off site... a change in the socio-economic situation.

 

[Eli]

But the cause of the defect is off site... a change in the socio-economic situation.

In some ways it all goes back to H&B use. It is my opinion that keeping H&B use of the land as if vacant and H&B use as improved at the base, helps with the analysis of whether obsolescence is caused from inside or outside the site boundaries and whether it is curable or incurable.

 

[Ken B]

But the cause of the defect is off site... a change in the socio-economic situation.

I suppose a similar line of thought might be that changes in construction materials and techniques also occur off-site. However, we don't consider that to be external obsolescence when considering the difference between the reproduction cost and replacement cost of dated improvements.