Property Valuation
In the cost approach to value, 'functional obsolescence' in a South Dakota property refers to:
APhysical deterioration from wear and tear
BLoss of value due to features that are outdated or no longer desirable✓ Correct
CLoss of value due to external factors outside the property
DDepreciation of the land value over time
Explanation
Functional obsolescence is a loss in value caused by deficiencies or superadequacies within the property itself, such as outdated floor plans, inadequate plumbing, or features that were desirable when built but are no longer in demand.
Related South Dakota Property Valuation Questions
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