Property Valuation
In the cost approach, the term 'functional obsolescence' refers to:
APhysical deterioration of the structure
BLoss in value due to factors outside the property (e.g., airport noise)
CLoss in value from outmoded design features or deficiencies in the structure✓ Correct
DDepreciation caused by deferred maintenance
Explanation
Functional obsolescence is loss in value from design deficiencies, outdated features, or inadequate layouts that reduce the property's utility. Examples: single garage in a two-car-garage market, outdated kitchen layout, low ceilings.
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