Which type of obsolescence results from external factors affecting the property's value?

Economic obsolescence is the correct type of obsolescence that occurs due to external factors impacting a property's value. This form of obsolescence is typically caused by influences outside the property itself, such as changes in the surrounding area, economic downturns, or new regulations that make an area less desirable for businesses or residents. For instance, if a new freeway is built that bypasses a neighborhood, leading to less traffic and visibility for local businesses, the value of properties in that area may decline due to this external economic situation.

In contrast, functional obsolescence refers to a property's features becoming outdated or less desirable due to changes in design standards or buyer preferences, which are intrinsic to the property itself. Physical obsolescence pertains to the decline in a property's physical condition due to wear and tear over time. Market obsolescence generally relates to broader market conditions affecting property values but does not specifically focus on external factors in the same manner as economic obsolescence does. Therefore, economic obsolescence is the most accurate term for value depreciation stemming from external influences.