What is functional obsolescence?

Functional obsolescence refers to a reduction in the value of a property caused by outdated or inefficient features that may no longer be desirable or useful in the current market. This can include elements such as old bathroom fixtures, inadequate insulation, or floor plans that do not meet contemporary standards for livability. When a property has outdated components, it often requires updates or renovations to align with current market expectations, which can adversely affect its marketability and overall value.

The other choices represent different concepts. Excessive wear and tear relates to the physical condition of a property rather than its design or functionality. Legal issues affecting property can involve zoning laws or title disputes, which do not speak to the property’s functional attributes. Improper use of land suggests misuse or zoning violations but does not encapsulate the idea of a property being functionally obsolete due to outdated design aspects.