Property Valuation
Functional obsolescence as a form of depreciation refers to:
AWear and tear from age and use
BLoss in value from external factors beyond the property
CA deficiency or superadequacy in the property's design or features✓ Correct
DEnvironmental contamination on the site
Explanation
Functional obsolescence is loss in value due to features that are outdated, poorly designed, or superadequate (over-improved) relative to current market expectations.
Related New Jersey Property Valuation Questions
- An appraisal for a NJ estate (tax purposes) typically uses which standard of value?
- A 'drive-by' or exterior-only appraisal (Form 2055) in NJ is typically used for:
- In New Jersey's active suburban real estate market, which valuation approach is most commonly used for single-family residential appraisals?
- The cost approach to value would be most reliable for which type of property?
- In NJ, a 'floor area ratio' (FAR) is a zoning measure that regulates:
- In the cost approach, the appraiser estimates value by:
- A NJ appraiser reviewing a property in a flood zone must consider which of the following as a form of external obsolescence?
- The NJ property tax assessment process involves determining the ratio of assessed value to market value, known as the:
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