Property Valuation
Functional obsolescence in property valuation refers to:
ADeterioration caused by normal wear and tear
BA loss in value due to outdated design or features that no longer meet market standards✓ Correct
CNegative influences from outside the property
DEnvironmental contamination reducing property value
Explanation
Functional obsolescence is a loss in value caused by outmoded design or functionality — such as a one-bathroom home in a market where two bathrooms are standard, or inadequate electrical systems.
Related Alabama Property Valuation Questions
- When market data indicates that comparable sales prices are increasing, a time adjustment to a sale from 6 months ago would be:
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