What term describes the loss of value due to negative external influences beyond the property owner's control?

The term that accurately describes the loss of value of a property resulting from negative external influences that are beyond the control of the property owner is economic or external obsolescence. This concept refers specifically to factors outside the property itself, such as changes in the surrounding neighborhood, economic downturns, increased crime rates, or new regulations that negatively impact property values.

Understanding this term is crucial for property tax consultants, as it helps identify factors that could influence the valuation of properties differently than changes made within the property (which would be considered internal obsolescence). Recognizing economic or external obsolescence is essential in assessing the fair market value of properties for taxation purposes, making it a significant concept in property appraisals and consultations.

Internal obsolescence pertains to the loss of value within the property itself, while other terms like market weakening and external depreciation do not specifically pinpoint this external, uncontrollable phenomenon that impacts property values. Thus, knowing the correct terminology aids in accurate property assessments and effective client advisement, especially in the context of property tax consulting.