Question

Loss of value due to inadequate or odd features in the property itself that cannot be easily cured. Functional obsolescence is often caused by changes in construction materials, methods, or equipment, or by consumer desires.

a) Physical Depreciation
b) Economic Obsolescence
c) Functional Obsolescence
d) Curable Obsolescence

Answer 1

Functional obsolescence is the loss of value in a property due to inadequate or odd features that cannot be easily fixed. It is caused by changes in construction materials, methods, or equipment, or by consumer desires. Functional obsolescence is different from physical depreciation and economic obsolescence.

Step-by-step explanation:

Functional obsolescence refers to the loss of value in a property due to inadequate or odd features that cannot be easily fixed, such as changes in construction materials or consumer desires. It is a type of obsolescence that is caused by factors within the property itself. For example, if a house has outdated plumbing or an unusual floor plan that doesn't appeal to most buyers, it may experience functional obsolescence. This is different from physical depreciation, which refers to wear and tear on the property over time, and economic obsolescence, which is caused by external factors like changes in the neighborhood or market conditions.