Property Valuation
What is functional obsolescence in an appraisal context?
APhysical deterioration of building components
BLoss in value due to outdated or inadequate features within the property✓ Correct
CLoss in value due to external factors
DDepreciation from deferred maintenance
Explanation
Functional obsolescence is loss in value caused by outdated design, layout, or features within the property itself, such as outdated kitchens, inadequate electrical systems, or inefficient floor plans.
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