Property Valuation
Functional obsolescence in a property refers to:
APhysical deterioration from wear and tear
BLoss of value due to factors outside the property, such as nearby industrial use
CA loss of value due to outdated or inadequate features within the property✓ Correct
DDepreciation calculated using the straight-line method
Explanation
Functional obsolescence is a loss in value caused by features within the property that are outdated, inadequate, or no longer desirable — such as outdated floor plans, inefficient layouts, or an inadequate number of bathrooms for the market.
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