Property Valuation
Functional obsolescence in property appraisal refers to:
APhysical deterioration from normal wear and tear
BA loss in value due to outdated features or poor design relative to current market standards✓ Correct
CValue loss due to external market conditions
DDepreciation of personal property
Explanation
Functional obsolescence is a loss in value due to features that are outdated, inadequate, or superfluous by current standards — for example, only one bathroom in a large home, low ceiling heights, or an outdated kitchen layout. It can be curable or incurable.
Related Indiana Property Valuation Questions
- The Appraisal Foundation establishes appraisal standards in the United States through:
- Indiana's statewide LIHTC (Low-Income Housing Tax Credit) program affects property appraisals of affordable housing by:
- An Indiana appraiser determines a property's 'as improved' value versus 'as if vacant' value. The difference represents the:
- The terminal cap rate in a DCF analysis for Indiana investment property is used to:
- Indiana's Value in Use differs from Market Value in that value in use represents:
- Indiana's 'True Tax Value' standard for assessment differs from fair market value in that:
- The cost approach to appraisal estimates value by:
- The cost approach to valuation uses the formula:
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