Property Valuation
Under the cost approach, 'functional obsolescence' in a Wisconsin property refers to:
APhysical wear and tear on the building
BLoss in value due to outdated features or design deficiencies (e.g., only one bathroom in a 4-bedroom home)✓ Correct
CValue loss due to neighborhood decline
DEnvironmental contamination on the property
Explanation
Functional obsolescence is depreciation caused by outdated features, poor design, or inadequate improvements relative to current market standards — such as inadequate electrical service or an unusual floor plan.
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