Suffering from external obsolescence

External obsolescence is something outside of the property boundaries negatively affects the value. In this case a nice custom home was built backing up to railroad tracks. This is a terrible location for a residence

External obsolescence effects appeal and marketability

External obsolescence is nothing more than a bad location. The value of
residential property is maximized when it is located on a quiet residential street. In Elmwood Park a single family home is located on a busy arterial street adjacent to multifamily property and in close proximity to commercial property and railroad tracks. A terrible location for a single family home. http://www.appraisercitywide.com 312-479-5344

Residents of the Roseland neighborhood of Chicago worry about future external obsolescence

The Chicago Transit Authority plans to extend the Red Line from 95th Street to 130th Street. To do so 259 parcels of real estate will need to be taken according to the Chicago Sun-Times.

Out of the 259 parcels there will be 95 residential properties that would be displaced for the right of way. A group of homeowners met with the CTA yesterday for more information.

Those that have their property taken by eminent domain will be paid fair market value under federal guidelines reported CTA President Forest Claypool.  "To establish the fair market value of a condemned home, CTA spoksmen said, the property owner would arrange one appraisal and the DTA and federal government would arrange a second.

Other residents worried about what it would be like to live next to an elevated line. Property that is in a quiet residential neighborhood today will suffer from external obsolescence in the future. 

Citywide Services real estate appraisers performs residential appraisals in Chicago and suburbs 312-479-5344

External obsolescence in the Galewood neighborhood of Chicago

When appraisers talk about external obsolescence they are referring to something outside of the subject property that is a negative influence. This house is built on an arterial street in close proximity to cell towers,  a hot dog stand and gas stations, all having a negative affect on appeal and marketability. http://www.appraisercitywide.com

External obsolescence that effects a condominium building

This condominium building in River Forest has external obsolescence due to a poor location on an arterial street with close proximity to commercial property. This negatively effects the appeal and marketability of  this condominium building. With it's location on a arterial street it has noise from excess traffic not found on a residential street. This building backs to a 7-11 that is open 24 hours a day, so all day and night there is traffic and noise.

Bad location close to elevated train

Here is a new loft conversion in Chicago's Lakeview neighborhood.

This complex suffers from external obsolescence due to its proximity to the CTA elevated train line.

It seems there is always someone that will buy a bad location

Proximity to Multifamily Buildings

This nice Elmwood Park bungalow is located on a major arterial street, it faces commercial property and is flanked on both sides by apartment buildings.

Now this may be a great location for an apartment building, however, the proximity to all this external obsolescence makes it a bad location for a single family home.

The value of a single family home is maximized when it is surrounded by other similar residences.