Which of the following is the best example of functional obsolescence in a residential property?
Correct Answer
B) A 4-bedroom home with only 1 bathroom (inadequate features by current market standards)
Functional obsolescence results from a deficiency or superadequacy within the property itself. A 4-bedroom home with only 1 bathroom is functionally inadequate by current market standards, reducing its value relative to comparable homes with more bathrooms. A deteriorating roof and worn carpet are examples of physical deterioration, while a nearby highway reducing desirability is external (economic) obsolescence — a loss in value caused by factors outside the property.
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Related Topics & Key Terms
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Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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