Functional Obsolescene

Question 1

What is obsolescence?

Answer 1

Form of depreciation which results in a loss in value even though the property is still in good condition.

Question 2

What is functional obsolescence?

Answer 2

Due to conditions within the property as opposed to economic obsolesce which is due to reasons outside the property.

Question 3

What causes obsolescence?

Answer 3

Poor design, too many or too few materials, excess construction, lack of utility, and overly costly operating expenses.