Property Valuation
Functional obsolescence in a property appraisal refers to:
ADeterioration caused by exposure to weather and the elements
BLoss of value due to factors outside the property, such as a nearby highway
CLoss of value from outdated design, poor layout, or features that no longer meet market standards✓ Correct
DDepreciation caused by deferred maintenance
Explanation
Functional obsolescence is a loss of value caused by deficiencies or superadequacies in the property's design, layout, or features relative to current market standards. Examples include outdated kitchens, inadequate electrical service, or too few bathrooms for a property's size. Curable functional obsolescence (worth fixing) is distinguished from incurable (too costly to fix). External obsolescence (from outside factors) and physical deterioration are separate categories.
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