For a property experiencing obsolescence, what is the expected impact on its value?

When a property is experiencing obsolescence, it typically refers to a decline in value due to factors such as outdated design, lack of modern amenities, or changes in surrounding neighborhoods that reduce its desirability. This decline in functionality or relevance directly correlates with a decrease in the property's market value.

Obsolescence can take two forms: physical obsolescence, which pertains to wear and tear or physical deterioration, and economic obsolescence, which is the loss of value due to external factors like changes in the local economy or demographics. Both forms, whether stemming from within the property itself or from external influences, lead to a diminished perception of worth in the eyes of potential buyers or investors. Thus, the overarching impact of obsolescence is a reduction in value.

Understanding the nature of obsolescence highlights why the expected impact on the property's value is a decrease; the relevance of the property is diminished, making it less attractive in the current real estate market.