Property Valuation
In an appraisal, 'functional obsolescence' refers to:
AA. Physical deterioration due to age and wear
BB. Loss of value from factors outside the property (highway noise)
CC. Loss of value due to outdated design, layout, or features within the property✓ Correct
DD. Depreciation resulting from environmental contamination
Explanation
Functional obsolescence is loss of value caused by outmoded features, poor design, or inadequate/super-adequate features within the property itself. Examples include outdated kitchens, small closets, or unconventional floor plans.
Related Georgia Property Valuation Questions
- The 'land-to-value ratio' in real estate investment analysis is used to:
- When a comparable sale sold for more than the subject property, the appraiser makes a:
- 'Value in use' differs from 'market value' in that value in use is:
- Highest and best use in real estate appraisal means the use that is:
- An 'as improved' appraisal values the property:
- The 'band of investment' technique in the income approach estimates a cap rate by:
- An appraiser uses the 'Marshall Valuation Service' (or similar cost data service) to estimate:
- In the income approach, 'effective gross income' is calculated as:
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