Property Valuation
The term 'functional obsolescence' in a property appraisal refers to:
APhysical wear and tear from aging
BLoss of value due to negative external influences
CLoss of value due to outdated design, layout, or equipment✓ Correct
DDiminished value from deferred maintenance
Explanation
Functional obsolescence is a loss in value resulting from deficiencies or superadequacies within the property itself — such as outdated floor plans, inadequate number of bathrooms for a home's size, or obsolete mechanical systems.
Related Washington Property Valuation Questions
- In Washington, an appraisal for a federally related transaction (FHA, VA, conventional with Fannie/Freddie) must be performed by:
- In Washington, the cost approach to value is most reliable for appraising:
- The term 'reconciliation' in an appraisal report refers to:
- In Washington, a 'fee simple' value and a 'leased fee' value of the same property may differ because:
- An appraiser studying market conditions in Tacoma notes that residential properties are selling in less than 7 days with multiple offers. This market condition is described as a:
- The principle of contribution in real estate valuation states that:
- In Washington, an appraiser's scope of work is determined by:
- The gross income multiplier (GIM) method of valuation uses which time period for income?
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →