Property Valuation
Functional obsolescence in real estate appraisal refers to:
APhysical wear and tear due to age and use
BLoss of value due to factors outside the property such as a nearby industrial facility
CA deficiency or superadequacy in the property's design or layout✓ Correct
DDepreciation caused by environmental contamination
Explanation
Functional obsolescence is a loss of value resulting from a flaw or outdated feature in the property's design or functionality — such as a four-bedroom home with only one bathroom, an outdated floor plan, or a superadequacy (e.g., the only home in the neighborhood with an elevator). It is not caused by physical wear or external forces.
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