What influence do external factors have on property value?

External factors significantly impact property value, primarily through their influence on demand. Factors such as the overall economy, local infrastructure, crime rates, and community amenities directly shape how desirable an area is to potential buyers. For instance, a booming economy can lead to increased job opportunities, attracting more residents and consequently raising property demand and values. Conversely, poor infrastructure or a declining economy can lead to decreased demand, negatively affecting property values.

In addition to economic factors, the presence of schools, parks, and public transportation can also play a crucial role in influencing property attractiveness. When these aspects improve, they often lead to higher property values due to increased demand from buyers looking for a pleasant living environment.

The other options do not acknowledge the broad and dynamic nature of external factors. They overlook the multifaceted influences of the economy and community attributes on property demand and valuation. Understanding the interplay of these external elements is crucial for effective property appraisal and counseling.