Property Valuation
Functional obsolescence in real estate refers to a loss in value due to:
APhysical deterioration from age and wear
BNegative external factors such as nearby industrial uses
COutdated design features or lack of modern amenities that reduce a property's utility✓ Correct
DEnvironmental contamination on the property
Explanation
Functional obsolescence is a loss of value caused by a deficiency or superadequacy within the property itself — such as an outdated floor plan, insufficient electrical capacity, or only one bathroom in a 4-bedroom home.
Related Oklahoma Property Valuation Questions
- In Oklahoma, an appraiser who accepts an assignment with a predetermined value (one that the client specifies must be reached) is:
- An Oklahoma appraiser performing a retrospective appraisal for a date in the past must:
- The income capitalization approach to value is most appropriate for valuing:
- A capitalization rate of 7% applied to an NOI of $42,000 produces an estimated value of:
- A recently sold comparable property is 200 square feet larger than the subject property. If the market indicates a value of $75 per square foot, what adjustment should the appraiser make to the comparable?
- Accrued depreciation in the cost approach to appraisal is the sum of:
- Reproduction cost in the cost approach is:
- When appraising an Oklahoma City neighborhood in a rapidly appreciating market, an appraiser must ensure comparables are:
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