Property Valuation
Functional obsolescence in a property refers to:
APhysical deterioration from normal wear and tear
BNegative external factors like a nearby industrial plant
CLoss of value due to outdated design, features, or layout that the market no longer desires✓ Correct
DDepreciation caused by deferred maintenance
Explanation
Functional obsolescence is a loss in value due to features that are outdated, poorly designed, or no longer acceptable to buyers — such as an outmoded kitchen layout, inadequate electrical service, or only one bathroom in a large home.
Related Tennessee Property Valuation Questions
- The 'before and after' method of appraisal is used in cases of:
- The principle that value is influenced by the expectation of future benefits is known as:
- An appraiser adjusts comparable sales for time to account for:
- The income approach to value is most appropriate for:
- The Tennessee Appraiser Certification and Licensure Board (TACLB) is the state agency that:
- The income approach uses a direct capitalization formula: V = I / R. In this formula, 'R' represents:
- Comparative Market Analysis (CMA) is typically prepared by a:
- When an appraiser uses the direct comparison approach, the final value indication is most influenced by:
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