Property Valuation
Functional obsolescence in an appraisal refers to a loss in value due to:
APhysical deterioration from wear and tear
BExternal factors such as nearby industrial development
COutdated or inadequate features within the property itself✓ Correct
DMarket conditions causing declining values
Explanation
Functional obsolescence is a loss in value caused by deficiencies or outdated features within the property, such as a bedroom accessible only through another bedroom, or outdated plumbing fixtures.
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