Property Valuation
Functional obsolescence in an appraisal refers to a loss of value due to:
APhysical wear and tear of the building
BFactors external to the property, such as a new highway nearby
COutmoded design features or equipment within the property✓ Correct
DOverbuilding in the surrounding area
Explanation
Functional obsolescence is a loss of value caused by design deficiencies or superadequacies within the property itself—such as outdated floor plans, inadequate electrical systems, or obsolete fixtures.
Related Arkansas Property Valuation Questions
- External obsolescence in property valuation is caused by:
- If a home in a neighborhood of $200,000 houses is improved with a $100,000 addition, its value will likely:
- The principle of substitution states that a buyer will not pay more for a property than:
- The principle of 'substitution' in real estate appraisal states that:
- The capitalization rate (cap rate) is calculated by dividing:
- A property's highest and best use is defined as the use that is:
- The principle of contribution states that the value of an improvement is measured by:
- The principle of substitution states that a buyer will pay no more for a property than:
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