Property Valuation
What is 'functional obsolescence' in the context of a Rhode Island property appraisal?
APhysical wear and tear from age and use
BA loss in value due to outdated features or poor design that affects marketability✓ Correct
CA decrease in value due to nearby environmental contamination
DAn increase in value from a modern renovation
Explanation
Functional obsolescence is a loss in value caused by outdated features, poor design, or inadequate systems that reduce marketability—for example, a four-bedroom house with only one bathroom, or an outdated kitchen layout.
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