What type of obsolescence results from the surroundings of a property?

The correct answer is related to the concept of economic or external obsolescence, which refers to a reduction in property value due to external factors not directly related to the property's own characteristics. This type of obsolescence is often influenced by the broader environment in which the property is situated, such as changes in neighborhood dynamics, the proximity to noise pollution, undesirable developments nearby, or shifts in the local economy.

For example, if a factory opens nearby that emits unpleasant odors, this could lead to a decrease in demand for properties in the area, thus lowering their market value. This is distinct from functional obsolescence, which refers to a property's own deficiencies or outdated features, and internal or cosmetic obsolescence, which focus on aspects contained within the property itself. Economic or external obsolescence captures the impact of external surroundings on property value, making it the appropriate choice in this context.