Property Valuation
Functional obsolescence in an appraisal refers to:
APhysical wear and tear of the building
BLoss in value due to factors outside the property
CLoss in value due to outdated design features or inadequate facilities within the property✓ Correct
DLoss in value due to deferred maintenance
Explanation
Functional obsolescence is a loss in value due to outdated design, lack of modern amenities, or poor floor plans within the property itself, such as only one bathroom in a 5-bedroom home.
Related Arizona Property Valuation Questions
- A 'reconciliation' in a final appraisal report involves the appraiser:
- A capitalization rate is derived in appraisal by:
- In the sales comparison approach, an appraiser makes 'adjustments' to comparable sales. If a comparable sale has a pool and the subject property does NOT, the appraiser would:
- The principle of progression in real estate appraisal means:
- Scarcity as a principle of value means that:
- Excess land in appraisal refers to:
- In the cost approach, what does 'reproduction cost' mean?
- A property with 'functional obsolescence' due to having only 1 bathroom in a 5-bedroom home represents:
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →