What Is External Obsolescence - How Baton Rouge Home Appraisers Think?
External Obsolescence can be locational factors which decrease the value of your home.
And, it can add "A;Res:" classification for "Adverse" location. Lenders "may" frown on lending on a home with an adverse location.
"The definition of external obsolescence, “is an element of depreciation; a defect, usually incurable, caused by negative influences outside a site and generally incurable on the part of the owner, landlord, or tenant."
Photo Caption: Homes fronting busy highways with loud noise and potential for wrecks in front yard!
Examples are being located too close to a major highway with excessive noise and danger of an 18 Wheeler ending up in your front yard in a wreck, your home fronting on a busy highway where numerous fatalities occur in a given year, location on corner of major road, being located in a crime ridden neighborhood or being located near a Chemical Plant like Exxon/Mobil.
Being located near a chemical plant like ExxonMobil in Baton Rouge which has experienced two major explosions since 1989. Exxon actually purchased blocks and blocks of homes surrounding the plant to create a buffer zone and lessen lawsuits in the event of future explosion(s). 
Sometimes, local home prices are already depressed or already reflect the negative...the market or buyers already know about the negatives and will only pay so much for that location. For Appraisers, it's those properties in normal good markets, say fronting a busy highway, that are the challenge. And, if a home is located on a busy highway, mortgage lenders want at least 1 to 2 "comps" or comparable sales that experience the same negative influence or located on a busy highway, even if we have to go back several years in time.
Source definition: external obsolescence a review - TEAM Consulting, LLC www.teamconsulting.cc/images/voss_extobsolescence.pdf
The term "How Appraisers Think" is borrowed from Sacramento Appraiser and Blogger, Ryan Lundquist, with www.sacramentoappraisalblog.com
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