Property Valuation
Functional obsolescence in a residential property is best illustrated by:
AA roof that needs replacement due to age
BA four-bedroom home with only one bathroom✓ Correct
CDeclining property values caused by a nearby factory
DDeferred exterior paint and landscaping maintenance
Explanation
Functional obsolescence is a loss of value due to outmoded or inadequate design features. A four-bedroom home with only one bathroom is functionally deficient by modern standards.
Related Arkansas Property Valuation Questions
- Which appraisal approach estimates value by analyzing recent sales of comparable properties?
- In the sales comparison approach, the appraiser adjusts for 'condition' of a comparable property that has deferred maintenance relative to the subject by:
- Effective age differs from actual (chronological) age in that effective age:
- The sales comparison approach estimates value by:
- External (economic) obsolescence differs from other forms of depreciation because it is:
- Economic life of an improvement differs from physical life in that it is:
- Which type of depreciation is caused by factors OUTSIDE the property, such as a nearby highway being constructed?
- The principle of ANTICIPATION in appraisal states that:
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