Property Valuation

Functional obsolescence refers to:

APhysical wear and tear on a building
BLoss in value due to factors outside the property boundaries
CLoss in value due to outdated design, layout, or features of the property✓ Correct
DDeterioration caused by deferred maintenance

Explanation

Functional obsolescence is a loss in value resulting from outdated or poor design features within the property, such as old plumbing fixtures, an impractical floor plan, or a single bathroom in a large house.

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