What is functional obsolescence typically caused by?

What is functional obsolescence typically caused by?

• A. Economic downturns impacting local markets
• B. External factors like neighborhood crime rates
• C. Design features that are no longer in demand
• D. Physical deterioration over time

Answer: (C)

Functional obsolescence refers to a reduction in the value of a property due to design features that are outdated or no longer meet the needs or preferences of contemporary buyers. This can be caused by various factors such as changes in technology, preferences for open floor plans versus segmented spaces, or the presence of outdated amenities, which may render a property less desirable or efficient compared to newer properties on the market. In the context of real property appraisal, recognizing functional obsolescence is important because it affects how an appraiser determines the value of a property. A home with a layout that is considered impractical or features that aren't sought after (like a kitchen layout that does not facilitate modern cooking) would likely sell for less than similar homes that have more contemporary designs. This highlights the impact design features have on property value and marketability over time.

Functional obsolescence refers to a reduction in the value of a property due to design features that are outdated or no longer meet the needs or preferences of contemporary buyers. This can be caused by various factors such as changes in technology, preferences for open floor plans versus segmented spaces, or the presence of outdated amenities, which may render a property less desirable or efficient compared to newer properties on the market.

In the context of real property appraisal, recognizing functional obsolescence is important because it affects how an appraiser determines the value of a property. A home with a layout that is considered impractical or features that aren't sought after (like a kitchen layout that does not facilitate modern cooking) would likely sell for less than similar homes that have more contemporary designs. This highlights the impact design features have on property value and marketability over time.