What does it mean when a property has high external obsolescence?

When a property has high external obsolescence, it indicates that its value is negatively impacted by external factors outside of the property itself. This can include elements such as changes in the neighborhood, economic downturns, environmental issues, or the proximity to undesirable locations, such as factories or busy highways. These external influences can significantly reduce the property’s desirability and market value, regardless of the condition of the property itself.

The other options do not accurately reflect the meaning of external obsolescence. While high desirability due to design and modern updates might enhance a property's value, they do not relate to external factors affecting value negatively. Similarly, being situated in a rapidly growing area is typically a positive factor, potentially increasing a property's value instead of detracting from it.