Property Valuation
Functional obsolescence in a New Hampshire property is best exemplified by:
AExterior deterioration from harsh winters
BA single-bathroom home in a neighborhood where all comparable homes have two bathrooms✓ Correct
CProximity to a landfill
DDeferred maintenance on the roof
Explanation
Functional obsolescence is a loss in value caused by deficiencies or superadequacies within the property itself. A home lacking bathrooms that comparables have is a classic functional obsolescence example.
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- In NH real estate, 'functional obsolescence' refers to a loss in value due to:Property Valuation
- External (economic) obsolescence in real estate valuation is caused by:Property Valuation
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- External (economic) obsolescence affecting a New Hampshire property is BEST illustrated by:Property Valuation
Key Terms to Know
Depreciation
A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Math Concepts
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