Property Valuation
What is 'functional obsolescence' as encountered in Pennsylvania real estate appraisal?
ALoss in value caused by a nearby industrial facility or highway that diminishes the property's appeal
BA loss in value resulting from outdated, inadequate, or superfluous features of the property itself that reduce its market appeal or utility✓ Correct
CPhysical deterioration caused by deferred maintenance and wear over time
DTax depreciation schedules required by the IRS for Pennsylvania investment properties
Explanation
Functional obsolescence is value loss from features of the property itself that reduce market appeal or utility — outdated design, poor floor plan, inadequate electrical capacity, or a single bathroom in a large home. It may be curable (cost of cure less than the value gained, such as updating an old kitchen) or incurable (cost exceeds benefit, such as low ceiling heights that cannot be changed).
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