Property Valuation
A Delaware home has an outdated, closed floor plan in a market where open floor plans are preferred. This is an example of:
APhysical deterioration
BExternal obsolescence
CFunctional obsolescence✓ Correct
DEconomic depreciation
Explanation
Functional obsolescence results from outdated design, layout, or equipment that no longer meets current market preferences. An outdated floor plan is a classic example of functional obsolescence.
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