Question

An appraiser is appraising a large house in an area of older lower priced houses. He notes that the property has four bedrooms but only one bathroom and no closets. The lack of closets and bathrooms is best defined as?

1) Physical deterioration
2) External obsolescence
3) Functional obsolescence
4) Curable depreciation

Answer 1

The lack of closets and bathrooms in the large house is considered functional obsolescence, which can negatively impact its value.

Step-by-step explanation:

The lack of closets and bathrooms in the large house that is being appraised is best defined as functional obsolescence. Functional obsolescence refers to a feature or characteristic of a property that is no longer desirable or useful, and can negatively impact its value. In this case, the lack of sufficient bathrooms and closets in a house with four bedrooms would be considered a functional deficiency and could be a reason for the property's lower value in comparison to other houses in the area.