Property Valuation
Functional obsolescence differs from physical deterioration in that functional obsolescence is caused by:
AWear and tear on the building's components
BWater damage to the foundation
COutdated design features or lack of modern amenities✓ Correct
DNearby industrial development
Explanation
Functional obsolescence is a loss in value due to outdated design, floor plan deficiencies, or lack of modern features (e.g., only one bathroom in a large home, inadequate electrical capacity). Physical deterioration is caused by wear, tear, and deferred maintenance.
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