Property Valuation
Functional obsolescence in appraisal refers to:
APhysical deterioration of the structure due to age
BLoss of value due to poor design, outdated features, or inadequate functional utility✓ Correct
CLoss of value due to external factors outside the property
DDepreciation caused by environmental contamination
Explanation
Functional obsolescence is a loss in value due to deficiencies in design, layout, or outdated features within the property itself (e.g., only one bathroom in a 4-bedroom house, outdated floor plan).
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