Property Valuation
What is 'functional obsolescence' and give an example relevant to a Pennsylvania property?
APhysical deterioration caused by deferred maintenance and neglect
BValue loss due to outdated design, features, or layout that makes the property less desirable — such as a one-bathroom home in a market expecting two bathrooms✓ Correct
CValue loss caused by external factors outside the property's control
DThe decline in value caused by a property being older than 20 years
Explanation
Functional obsolescence is value loss caused by deficiencies in the property's design, layout, or features relative to current market expectations. Examples in Pennsylvania: a 4-bedroom home with only one bathroom, a Pittsburgh rowhouse with bedrooms accessible only through other bedrooms, inadequate electrical capacity in a home with updated appliances, or an industrial building with ceiling heights too low for modern logistics. Functional obsolescence may be 'curable' (correctable at reasonable cost) or 'incurable' (too expensive to fix).
Related Pennsylvania Property Valuation Questions
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