What signifies external obsolescence more specifically in appraisal terms?

External obsolescence in appraisal terms refers to a loss in property value caused by factors outside of the property itself. This can include issues such as changes in the economy, market conditions, or community factors that negatively affect the desirability or utility of a property.

Unfavorable economic conditions impacting property value exemplify external obsolescence because they arise from external influences such as market downturns, increased unemployment, or declining demand for housing in a particular area. These conditions can lead to a decrease in property values, irrespective of the property's physical qualities or improvements.

In contrast, other options relate to changes in property or ownership that do not inherently lead to a decrease in value caused by external factors. For example, a change in ownership status may involve the transfer of a property but does not necessarily affect its market value negatively. Greater community aesthetic improvements could enhance property values, while rising construction costs may influence investment but do not directly relate to value depreciation from external factors.