Property Valuation
Functional obsolescence in a NC property is caused by:
AExternal economic forces like a new highway
BDeficiencies or superadequacies within the property itself that reduce its utility or desirability✓ Correct
CPhysical deterioration from weather damage
DMarket-wide price declines
Explanation
Functional obsolescence results from factors within the property itself: outdated floor plans, inadequate square footage, lack of features buyers expect (deficiencies), or over-improvements (superadequacies).
Related North Carolina Property Valuation Questions
- In NC, a 'drive-by appraisal' using only exterior inspection and public records is most commonly used for:
- In the cost approach, 'land value' is estimated separately because:
- The income approach to value uses which formula?
- Plottage value refers to:
- The sales comparison approach to value relies primarily on:
- A property in Raleigh, NC has a net operating income of $48,000 and the market capitalization rate is 8%. Its estimated value using the income approach is:
- The income approach to value is most appropriate for which type of NC property?
- A NC appraiser's 'workfile' for an appraisal must be retained for how many years?
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