Property Valuation
Functional obsolescence in real estate refers to:
APhysical deterioration from age and wear
BLoss in value due to external forces such as nearby highway construction
CLoss in value due to outmoded features or poor design within the property✓ Correct
DDepreciation calculated for tax purposes
Explanation
Functional obsolescence is a loss in value caused by outdated or inadequate features within the property itself, such as too few bathrooms, outdated floor plans, or obsolete mechanical systems.
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