Property Valuation
Functional obsolescence in real estate refers to:
APhysical deterioration from age and wear
BA loss in value due to factors outside the property such as a nearby landfill
CA loss in value caused by outdated design, layout, or features✓ Correct
DDepreciation from deferred maintenance
Explanation
Functional obsolescence is a loss of value resulting from the property's design or features being outdated compared to current market expectations. Examples include outdated floor plans, low ceilings, or only one bathroom in a large home.
Related Pennsylvania Property Valuation Questions
- What does the 'capitalization rate' indicate when applied to income-producing property?
- A 'before and after' appraisal technique in Pennsylvania condemnation cases is used to:
- Reconciliation in a Pennsylvania appraisal refers to:
- An appraiser performing a Pennsylvania residential appraisal must be licensed or certified under which federal-state framework?
- A Pennsylvania appraiser must sign a certification with their appraisal report that includes statements about:
- When making an adjustment in the sales comparison approach, if the comparable sale has a feature the subject lacks, the appraiser:
- Curable depreciation in the cost approach refers to items where:
- Comparative market analysis (CMA) and an appraisal are different in that:
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →