Property Valuation
Functional obsolescence in Iowa real estate appraisal refers to:
AA loss in value due to external neighborhood factors
BA loss in value due to the property's design or features that don't meet current market standards✓ Correct
CPhysical wear and tear on the structure
DDepreciation caused by environmental contamination
Explanation
Functional obsolescence is a loss in value from poor design, outdated features, or floor plans that no longer appeal to the market—such as too few bathrooms or an obsolete kitchen layout.
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