Property Valuation
Functional obsolescence in real estate refers to:
APhysical deterioration from normal wear and tear
BA loss in value due to outdated or poor design features✓ Correct
CValue loss caused by negative factors outside the property
DDepreciation due to environmental contamination
Explanation
Functional obsolescence is a loss in value caused by outdated or inadequate features of the property itself, such as an outdated floor plan, inadequate electrical service, or obsolete fixtures.
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