Property Valuation

The concept of 'functional utility' in NH appraisal refers to:

AWhether a property has functioning utilities
BThe property's ability to perform the function for which it is intended relative to current market standards✓ Correct
CThe utility company's easements on the property
DThe energy efficiency of the HVAC system

Explanation

Functional utility measures how well a property performs its intended function relative to current buyer expectations. A home lacking functional utility (outdated floor plan, insufficient bedrooms/baths) may suffer functional obsolescence.

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