Property Valuation
In the cost approach, functional obsolescence refers to:
ADeterioration from age and wear
BLoss of value due to outdated design or features✓ Correct
CDecline in value due to external factors
DPhysical damage from deferred maintenance
Explanation
Functional obsolescence is a loss in value due to outmoded or inadequate design features, such as outdated floor plans, inadequate electrical systems, or lack of modern amenities that buyers expect today.
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