Property Valuation
Functional obsolescence in an appraisal refers to:
APhysical deterioration from normal wear and tear
BLoss of value due to factors outside the property
CLoss of value from outdated design or features within the property✓ Correct
DDepreciation caused by a nearby industrial facility
Explanation
Functional obsolescence is a loss in value caused by outdated or inadequate features within the property itself, such as only one bathroom in a four-bedroom home or outdated floor plans.
Related Delaware Property Valuation Questions
- What is 'prospective value' in a Delaware appraisal?
- In the cost approach, 'reproduction cost' refers to:
- In the sales comparison approach, if a comparable property has a feature that the subject property lacks, the appraiser makes what type of adjustment to the comparable's price?
- What is 'effective gross income' in property valuation?
- The principle of 'regression' in property value means:
- A Delaware appraisal determines the value of a residential property at $350,000. The bank's loan officer believes the value should be $390,000. Who has the authority to change the appraised value?
- External (economic) obsolescence affecting a Delaware property could be caused by:
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