Property Valuation
Functional obsolescence in real estate refers to:
APhysical deterioration from wear and tear
BLoss in value due to factors outside the property
CLoss in value due to outdated design features or inadequate improvements✓ Correct
DDepreciation from environmental contamination
Explanation
Functional obsolescence is a loss in value caused by features within the property that are outdated, inadequate, or superadequate relative to current market standards. Examples include only one bathroom in a large home or a bedroom accessible only through another bedroom.
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