Property Valuation
Functional obsolescence in property valuation refers to:
APhysical deterioration of the structure
BA loss in value due to outdated design, layout, or features✓ Correct
CExternal factors reducing property value
DDepreciation caused by deferred maintenance
Explanation
Functional obsolescence is a loss in value resulting from design deficiencies or outdated features—such as a one-bathroom home in a market that expects two bathrooms—that reduce the property's utility.
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