Property Valuation
A Hawaii home appraiser notes that the property has an outdated floor plan that reduces its marketability. This is an example of:
AA. Physical deterioration
BB. Functional obsolescence✓ Correct
CC. External obsolescence
DD. Deferred maintenance
Explanation
Functional obsolescence refers to a loss in value due to outdated design, features, or layout that makes the property less desirable compared to current market standards.
Related Hawaii Property Valuation Questions
- In Hawaii, what is 'comparable selection' in the appraisal process?
- Which type of depreciation is considered incurable and arises from factors outside the property's boundaries?
- The principle of substitution in appraisal states that:
- In Hawaii, the term 'economic life' of an improvement refers to:
- In an appraisal, what is the term for a loss in value from any cause?
- The principle of 'highest and best use' is defined as the use that is:
- In Hawaii, a broker preparing a comparative market analysis (CMA) for a seller:
- Which appraisal approach estimates value by calculating the cost to reproduce or replace the improvements, minus depreciation, plus land value?
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