Property Valuation
Functional obsolescence in an appraisal refers to:
APhysical wear and tear on the structure
BA loss in value due to outdated design, poor floor plan, or inadequate features relative to current market standards✓ Correct
CDepreciation caused by external economic factors
DThe normal aging of a roof or HVAC system
Explanation
Functional obsolescence results from design deficiencies or outdated features (e.g., only one bathroom in a large home, outdated kitchen layout) that reduce the property's value relative to current buyer expectations.
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