Property Valuation
Functional obsolescence in a property is caused by:
APhysical deterioration of structural components
BNegative factors located outside the property
COutmoded or inadequate features within the property itself✓ Correct
DChanges in zoning regulations affecting the neighborhood
Explanation
Functional obsolescence is a loss in value due to features within the property that are outdated, inadequate, or over-improved relative to current market standards — such as an outdated kitchen, inefficient floor plan, or a three-car garage in a one-car neighborhood.
Related Alaska Property Valuation Questions
- An Alaska property has a GPI of $150,000, a 5% vacancy rate, and operating expenses of $55,000. What is the NOI?
- An Alaska appraiser is valuing a historic log cabin near Talkeetna. The cabin has a unique design with no comparable sales nearby. The appraiser would rely MOST heavily on:
- A comparable sale used in the sales comparison approach requires a positive adjustment when:
- An Alaska appraiser using the sales comparison approach gives the most weight to which comparable?
- An Alaska appraiser must certify in their report that the appraisal was performed in accordance with:
- In Alaska, a 'letter appraisal' or 'form report' appraisal is MOST commonly used for:
- Gross Rent Multiplier (GRM) is calculated as:
- An Alaska property with an NOI of $60,000 and a capitalization rate of 7.5% has an estimated value of:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →