Property Valuation
A Michigan appraiser notes that a subject property's bathroom has outdated fixtures. This type of depreciation is called:
APhysical deterioration
BFunctional obsolescence✓ Correct
CExternal obsolescence
DEconomic obsolescence
Explanation
Functional obsolescence refers to a loss in value due to design deficiencies or outdated features within the property itself, such as outdated fixtures, poor floor plans, or insufficient electrical systems.
Related Michigan Property Valuation Questions
- In Michigan, the land-to-improvement ratio is an important consideration because:
- The income approach to property valuation in Michigan is most commonly used for:
- Which type of depreciation in the cost approach is considered incurable?
- In Michigan, 'overimprovement' of a property occurs when:
- In Michigan, a home's 'below-grade' finished area (basement) is typically:
- In Michigan, a 'restricted appraisal report' under USPAP is intended for:
- In Michigan, 'gross rent multiplier' (GRM) as a valuation method is most suitable for:
- Functional obsolescence in an appraisal refers to:
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