Property Valuation
Functional obsolescence in a property refers to:
ADamage caused by deferred maintenance
BLoss in value due to outdated design, features, or floor plan✓ Correct
CDecline in value from negative neighborhood factors
DDepreciation due to natural disasters
Explanation
Functional obsolescence is loss in value caused by features that are outdated, inadequate, or over-improved relative to current market standards — such as a one-bathroom house in a three-bathroom neighborhood.
Related Texas Property Valuation Questions
- An appraiser using the sales comparison approach must make adjustments for differences between the subject and comparable properties. The most reliable adjustment amount comes from:
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- A Texas residential appraiser notes that the subject property is the largest home on the block. The principle of REGRESSION suggests this property:
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