What aspect does external obsolescence take into account?

External obsolescence refers to a reduction in property value caused by factors that are outside of the property itself. This encompasses local market dynamics and external conditions that negatively impact the property's desirability and value. Such factors might include economic downturns, changes in neighborhood demographics, proximity to undesirable uses like landfills or factories, or shifts in local infrastructure that alter accessibility.

In contrast, the other aspects mentioned—internal property flaws, maintenance issues, and design limitations—are typically categorized as internal obsolescence. These relate to the property's condition or features rather than external impacts. Thus, the focus on external conditions emphasizes the importance of broader market forces and environmental influences that can significantly affect property valuation.