Which of the following factors does the Principal of External Factors identify as impacting property value?

The Principal of External Factors emphasizes that property value is influenced by a variety of external considerations. Economic, political, social, and physical issues encompass broad aspects of the environment surrounding the property.

Economic factors might include overall economic conditions, such as job growth or recession, which directly affect demand for property. Political factors, including local government policies and legislation, can influence property value through zoning laws or tax structures. Social factors reflect demographic trends that affect neighborhood desirability, while physical factors encompass geographical location, infrastructure, and environment.

Understanding that property value is not solely determined by intrinsic features of the property, but also by these external contexts is crucial for assessing real estate markets. This holistic view helps in recognizing how interconnected different influences can be when determining value.