Property Valuation
An appraiser notes that a newly built 6,000 sq ft single-family home is located in a neighborhood of 1,500–2,000 sq ft homes. The large home likely suffers from:
APhysical deterioration from being a larger building
BFunctional obsolescence — superadequacy — because it exceeds neighborhood norms✓ Correct
CExternal obsolescence from neighboring inferior properties
DNo negative impact because larger homes are always worth more
Explanation
A superadequacy is a feature that exceeds the standard for the neighborhood (overimprovement). The large home likely suffers from functional obsolescence due to superadequacy because the market in that neighborhood does not fully recognize the value of excessive size.
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