Property Valuation

Functional obsolescence in property valuation refers to:

APhysical deterioration caused by wear and tear
BA loss in value due to outmoded features or poor design relative to market preferences✓ Correct
CValue loss from external factors like a nearby highway
DDepreciation of personal property inside the home

Explanation

Functional obsolescence is a loss in value resulting from outmoded features, poor floor plan, or design deficiencies relative to current market preferences—not physical wear or external factors.

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