Property Valuation
In New York, 'functional obsolescence' in a property refers to:
APhysical deterioration of the building due to age and use
BA loss in value due to features of the property itself that are outdated or inadequate relative to current market expectations✓ Correct
CNegative external factors, such as a nearby industrial facility
DA reduction in value caused by a zoning change
Explanation
Functional obsolescence is a loss in value attributable to deficiencies or defects in the property's design or features that are inadequate for current market demands — such as outdated kitchens, bathrooms with poor layout, or insufficient garage space. It is one of three forms of depreciation in the cost approach.
Related New York Property Valuation Questions
- In New York, a 'bracketing' strategy in the sales comparison approach means the appraiser selects comparables that:
- The income approach to value is most appropriate for:
- Economic obsolescence (external obsolescence) is caused by:
- If a property has a net operating income (NOI) of $50,000 and the capitalization rate is 5%, what is the estimated value?
- Which factor is NOT one of the four elements of value (DUST)?
- When an appraiser says a property has 'curable physical deterioration,' they mean:
- When a Long Island home's value is negatively impacted because it is located near a power line, this is an example of:
- Effective age in appraisal refers to:
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