Property Valuation

Functional obsolescence in real estate refers to:

APhysical deterioration from wear and tear
BLoss of value due to factors outside the property such as a nearby landfill
CLoss of value from outdated design, layout, or features within the property✓ Correct
DDepreciation caused by deferred maintenance

Explanation

Functional obsolescence is value loss caused by deficiencies or super-adequacies within the property itself, such as an outdated floor plan, inadequate electrical capacity, or only one bathroom in a large home.

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