In Texas, functional obsolescence includes:
Question & Answer
Review the question and all answer choices
Nearby highway noise
A is incorrect because nearby highway noise represents external obsolescence (also called environmental obsolescence), which is caused by external factors outside the property's control, not by outdated features within the property itself.
Outdated floor plan or features
Deferred maintenance
C is incorrect because deferred maintenance refers to physical deterioration or wear and tear that hasn't been addressed, which falls under physical depreciation, not functional obsolescence.
Economic decline of the area
D is incorrect because economic decline of the area represents economic obsolescence, which is caused by external economic factors affecting the entire neighborhood or region, not by outdated property features.
Why is this correct?
B is correct because functional obsolescence specifically refers to outdated design or features within the property itself that reduce its utility or appeal. These are internal characteristics that make the property less desirable compared to newer properties with more modern layouts and features.
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