Property Valuation
In Oregon, an appraiser notes that a property has 'functional utility' but an 'inefficient floor plan.' This would likely result in:
AAn upward value adjustment for character
BA downward adjustment for functional obsolescence✓ Correct
CNo adjustment since the home is still usable
DAn upward adjustment for uniqueness in the market
Explanation
An inefficient floor plan (e.g., poor room flow, excess circulation space, awkward bedroom placement) is a form of functional obsolescence that reduces a property's appeal and value compared to properties with more efficient designs. An appraiser would typically make a downward adjustment for this functional deficiency when comparing to better-designed comparable properties.
Related Oregon Property Valuation Questions
- The principle of 'contribution' in real estate appraisal states that:
- In Oregon, which appraisal approach is typically given the MOST weight for vacant land?
- An appraiser is comparing two Oregon properties: one on the east side of Portland (valued at $450,000) and one on the west side (valued at $650,000). The higher west-side value likely reflects:
- Functional obsolescence in a property is BEST illustrated by:
- In the sales comparison approach, an 'arm's length transaction' is preferred because:
- A licensed Oregon real estate appraiser must adhere to ethical and performance standards outlined in:
- What is 'arm's length transaction' in Oregon appraisal and why is it important?
- A property generates a net operating income of $90,000 and is valued at $1,200,000. What is the capitalization rate?
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →