Property Valuation
Functional obsolescence in an Iowa property appraisal refers to:
AA decrease in value caused by forces outside the property
BA loss in value due to outdated or inadequate features within the property itself✓ Correct
CPhysical deterioration from normal wear and tear
DA government taking of part of the property
Explanation
Functional obsolescence is a loss in value caused by a deficiency or superadequacy within the property, such as a floor plan that no longer meets market standards, outdated fixtures, or an over-improvement relative to the neighborhood.
Related Iowa Property Valuation Questions
- In Iowa, an ad valorem tax means the tax is based on:
- An Iowa property sold for $380,000. The selling expenses were $25,000. The cost basis was $295,000. What is the capital gain?
- An Iowa property's land is valued at $75,000 and the improved value is $295,000. What is the percentage of value attributable to the land?
- What is the physical deterioration of an Iowa rental property that is considered 'incurable'?
- When using the sales comparison approach, an appraiser makes adjustments to comparable sales prices because:
- Which of the following BEST defines 'market value'?
- In Iowa, the gross rent multiplier (GRM) for a rental home is calculated as:
- An appraiser is evaluating a commercial property with the following: Potential Gross Income = $80,000; Vacancy = 5%; Operating Expenses = $35,000. What is the Net Operating Income?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →