Property Valuation
In New York, 'functional obsolescence' in an appraisal refers to:
AValue loss due to external factors outside the property
BValue loss due to features within the property that are inadequate, outdated, or superfluous for current market needs✓ Correct
CPhysical deterioration from normal wear and tear
DChanges in zoning that reduce property value
Explanation
Functional obsolescence is loss in value caused by deficiencies or superadequacies within the property itself—such as an outdated floor plan, obsolete kitchen, or inadequate electrical capacity—relative to current market standards.
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