Property Valuation
In Connecticut, 'functional obsolescence' in an appraisal refers to:
APhysical deterioration due to age and wear
BA decrease in value due to factors outside the property boundaries
CA loss in value due to outdated design, layout, or features of the property itself✓ Correct
DDepreciation claimed on income tax returns
Explanation
Functional obsolescence is a loss in value caused by deficiencies or outdated features within the property—such as an outmoded floor plan, inadequate electrical capacity, or a style that no longer appeals to buyers. It can be curable (fixable) or incurable.
Related Connecticut Property Valuation Questions
- Which of the following increases the cap rate of an income property, all else being equal?
- A Connecticut property's income statement shows: Potential gross income $96,000; vacancy 5%; operating expenses $32,000. What is the NOI?
- Functional obsolescence in real estate appraisal refers to:
- A Connecticut property sold 8 months ago for $480,000. Since then, market values have increased 3%. What is the time-adjusted market value?
- A Connecticut appraiser determines that a property has a remaining economic life of 35 years and a current effective age of 15 years. The total economic life estimate is:
- If a Connecticut income property has an NOI of $90,000 and the market cap rate is 6%, what is the estimated value using the income approach?
- An appraiser using the cost approach to value a property would:
- In the sales comparison approach, a comparable sale that sold 18 months ago would typically require:
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →