Practice of Real Estate
Which of the following is an example of functional obsolescence?
- aA factory built next to the home
- bPeeling paint and a worn roof
- An outdated floor plan with no closets
- dA general decline in the neighborhood
Answer: C · An outdated floor plan with no closets
Functional obsolescence is a loss in value from outdated design or features WITHIN the property (poor layout, one bathroom, no closets). Peeling paint is physical deterioration; a factory next door is external obsolescence. Common trap: students confuse functional (internal design flaw) with external (outside influence) obsolescence.
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