Property Valuation
In Montana, 'functional obsolescence' in a property appraisal refers to:
APhysical deterioration of structural components
BExternal factors like nearby industrial use reducing value
CReduced value due to outdated design, poor floor plan, or inadequate features for current market standards✓ Correct
DThe natural decline in value as a building ages
Explanation
Functional obsolescence is a loss in value caused by deficiencies or superadequacies in the property's design or features—such as outdated kitchens, inadequate electrical capacity, or a poor floor plan that doesn't meet current buyer expectations.
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