In assessing physical obsolescence, which of the following factors is most relevant?

When assessing physical obsolescence, the most relevant factor is structural damage. Physical obsolescence refers to the loss in value of a property due to its physical condition and wear and tear over time. This can include issues such as deterioration, neglect, or any physical impairments that impact the usability and desirability of a property.

Structural damage is a direct indicator of how well a property has been maintained or how it has been affected by external factors like weather or age. Significant structural damage can severely limit the functional capacity of the property and may require substantial investment to restore the property's original condition or improve it. Consequently, this type of damage not only reduces the property's market value but also may affect the safety and habitability of the space.

While market demand, neighborhood appeal, and economic trends are important factors in determining property values, they do not specifically address the physical state of the property itself. They provide context for value fluctuations but do not directly relate to the physical characteristics that contribute to obsolescence in the way structural damage does. Thus, recognizing and evaluating structural damage is critical to understanding the extent of physical obsolescence in property assessment.