Property Valuation
Functional incurable obsolescence in a Utah home might include:
AA leaky roof that can be repaired for $5,000
BA poor floor plan that cannot be economically reconfigured (e.g., a bedroom accessible only through another bedroom)✓ Correct
CPeeling exterior paint
DAn outdated kitchen that can be renovated
Explanation
Functional incurable obsolescence exists when the cost to cure exceeds the value added. A poor floor plan—like a bedroom accessible only through another bedroom—cannot be economically corrected without major structural work, making it incurable functional obsolescence.
Related Utah Property Valuation Questions
- Market value in Utah real estate appraisal is typically defined as the most probable price a property would sell for:
- Reconciliation in the appraisal process refers to:
- In the income approach, Effective Gross Income (EGI) is calculated as:
- A Utah residential appraisal uses the URAR (Uniform Residential Appraisal Report) which is required by:
- The principle of highest and best use in real estate valuation means:
- In the income approach to value, Net Operating Income (NOI) is calculated as:
- The capitalization rate (cap rate) is calculated as:
- Which appraisal approach is most appropriate for a historic LDS chapel being converted to a commercial space in Salt Lake City?
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