Property Valuation
What is functional obsolescence in appraisal terminology?
ADepreciation caused by factors outside the property
BLoss in value due to outdated design, layout, or features within the property✓ Correct
CPhysical deterioration from deferred maintenance
DDecline in value due to neighborhood decline
Explanation
Functional obsolescence is a loss in value caused by deficiencies or super-adequacies within the property itself, such as outdated floor plans, inadequate plumbing, or features no longer desired by the market.
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