Property Valuation
Functional obsolescence in a property appraisal refers to:
APhysical deterioration due to age and wear
BA loss in value caused by outdated features or poor design within the property✓ Correct
CValue loss caused by external factors like nearby industrial use
DThe natural decline in value due to market changes
Explanation
Functional obsolescence is a loss in value due to outdated features, poor floor plans, or inadequate utilities within the property itself — such as only one bathroom in a four-bedroom home.
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