16

Question 1

Functional obsolescence

Answer 1

Obsolescence means a loss in value from the market’s response to the item. Out modded or unacceptable physical or design features that are no longer considered desirable by purchasers are considered durable or that can be replaced or redesigned at a cost that would be offset by the anticipated increase in value.

Question 2

External obsolescence

Answer 2

If depreciation is caused by negative factors not on the subject of the property such as environmental social or economic forces it is always incurable