Property Valuation
Functional obsolescence differs from physical deterioration in that it results from:
AWear and tear on the structure over time
BExternal factors like nearby industrial development
COutdated design, poor floor plan, or inadequate systems that reduce utility✓ Correct
DDeferred maintenance by the current owner
Explanation
Functional obsolescence is a loss in value caused by factors within the property related to design or utility, such as outdated fixtures, inadequate ceiling heights, or a poor floor plan that no longer meets market standards.
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