What is an example of incurable obsolescence in appraisal terminology?

Incurable obsolescence refers to a loss in value of a property that cannot be corrected or easily remedied, often due to external factors. A factory located too close to a residential home exemplifies this concept, as the proximity of industrial activity can lead to issues such as noise, pollution, and overall reduced desirability of the residential property. These factors are often outside the control of the homeowner and cannot be easily fixed, which leads to a permanent decrease in property value.

In contrast, other options reflect issues that may be remedied or improved upon. Outdated decor can be updated with renovations, while properties in declining neighborhoods might see revitalization efforts that could enhance their value over time. Additionally, design flaws in a building can often be corrected through renovations or redesigns. Thus, incurable obsolescence specifically arises from factors that cannot be changed, making the situation with the factory and the home a clear example of this appraisal terminology.