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ValuationDepreciationMEDIUM

A West Virginia property with 4 bedrooms but only 1 bathroom suffers from:

Correct Answer

B) Functional obsolescence

Functional obsolescence is a loss in value due to features that are outdated or inadequate for current market standards. A 4-bedroom home with only 1 bathroom has a poor room ratio that doesn't meet modern buyer expectations.

Answer Options
A
Physical deterioration
B
Functional obsolescence
C
External obsolescence
D
No depreciation

Why This Is the Correct Answer

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Why the Other Options Are Wrong

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Related Topics & Key Terms

Related Topics:

curable-functionalsuperadequacymarket-expectations

Key Terms:

functional obsolescence4BR 1BAinadequatecurabledesign flaw
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