Property Valuation
Functional obsolescence in real property refers to:
APhysical deterioration due to wear and tear
BNegative outside influences such as a nearby highway
CLoss in value due to outmoded features or design flaws within the property✓ Correct
DDeterioration of the neighborhood over time
Explanation
Functional obsolescence is a loss in value caused by factors within the property itself — such as outdated floor plans, inadequate electrical systems, or features that no longer meet modern standards.
Related Georgia Property Valuation Questions
- The 'income approach' to value is MOST appropriate for:
- The sales comparison approach to value is most appropriate for:
- The reproduction cost in the cost approach refers to:
- Plottage (assemblage) refers to the increase in value when:
- In the cost approach, the formula for estimating value is:
- In an appraisal, a comparable sale that is superior to the subject property requires the appraiser to:
- A Georgia commercial property has potential gross income of $120,000, vacancy and credit loss of 8%, and operating expenses of $40,000. Using the income approach with a cap rate of 9%, what is the estimated value?
- In the income approach, 'contract rent' refers to:
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