Property Valuation
Functional obsolescence in a property appraisal refers to:
APhysical deterioration from normal wear and tear
BA loss in value due to outdated design, layout, or features that no longer meet current market standards✓ Correct
CNegative external influences outside the property
DDamage caused by environmental contamination
Explanation
Functional obsolescence is a loss in value due to deficiencies or superadequacies within the property itself — for example, a single bathroom in a four-bedroom home or an outmoded floor plan.
Related Indiana Property Valuation Questions
- An Indiana appraiser finding that a comparable sale was a foreclosure should typically:
- Regression in real estate valuation means that:
- The sales comparison approach to value is MOST appropriate for:
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- An Indiana appraisal for an estate tax purpose (date of death value) uses which effective date?
- An Indiana broker submits a broker price opinion (BPO) for a bank. A BPO differs from an appraisal in that:
- An appraiser performing a sales comparison approach makes a positive adjustment to a comparable sale when:
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