Property Valuation
What is 'functional utility' in property appraisal?
AThe ability of a property to generate rental income
BThe usefulness and desirability of a property's design, layout, and features relative to current market standards✓ Correct
CThe number of functional systems (HVAC, plumbing, electrical) in proper working order
DThe ability of the land to support the intended use without additional engineering
Explanation
Functional utility refers to how well a property's design, layout, and features meet the needs and preferences of the current market. High functional utility contributes positively to value; functional deficiencies cause functional obsolescence.
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