Property Valuation
In the cost approach, 'functional obsolescence' refers to:
ADeterioration from weather and age
BLoss in value from features within the property that are inadequate, outdated, or superfluous relative to current market standards✓ Correct
CNegative external influences like highways
DDeferred maintenance
Explanation
Functional obsolescence is a loss in value caused by deficiencies or superadequacies within the property itself — such as outdated floor plans, inadequate electrical systems, or having only one bathroom in a large house.
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