Property Valuation
Functional obsolescence in a property is caused by:
APhysical wear and aging of materials
BNegative external factors like nearby industrial use
COutdated design features that reduce utility or desirability✓ Correct
DAn increase in local property taxes
Explanation
Functional obsolescence results from a deficiency or superadequacy within the property itself — outdated floor plans, inadequate electrical systems, or features no longer desired by the market. It can be curable or incurable.
Related Arkansas Property Valuation Questions
- The sales comparison approach estimates value by:
- Which of the following is an example of a physical characteristic that an appraiser would adjust for in the sales comparison approach?
- When an appraiser selects comparable sales, they should prefer comparables that:
- In the income approach to value, Net Operating Income (NOI) is calculated as:
- Comparable sales selected by an appraiser should be:
- The 'as-stabilized' value concept in appraisal refers to:
- Physical deterioration that can be corrected at a cost that is less than the resulting increase in value is called:
- If a home in a neighborhood of $200,000 houses is improved with a $100,000 addition, its value will likely:
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