Mar 26, 2024 · Functional obsolescence may or may not be caused by trends in buyer or market preferences, outdated design, or even advances in technology. Let’s look at a few examples: A home …

Several scenarios illustrate functional obsolescence: Single-bathroom homes: A two-bedroom house with just one bathroom might deter buyers seeking more convenience. Outdated kitchen designs: A …

Nov 7, 2025 · In real estate, functional obsolescence is a critical concept that can significantly influence property values and investment decisions. It refers to the reduction in a property’s usefulness or …

To better understand functional obsolescence, let’s explore some common examples that can render a property functionally obsolete in the real estate market: 1. Unfavorable Floor Plan. A property with an …

Jul 16, 2021 · In real estate, functional obsolescence usually leads to lower appraisal values. Real estate can exhibit functional obsolescence if its design features are outdated, not useful, or...

Oct 10, 2025 · For example, a 1950s-style house in a modern neighborhood may suffer from functional obsolescence and need to be stripped to its bare bones to overcome it. However, other homes may …

Nov 29, 2025 · Functional obsolescence arises from two primary sources: defects in design that cause inadequacy and improvements that result in super-adequacy. A common inadequacy example is a …

Dec 4, 2024 · Examples include outdated floor plans, insufficient bathrooms, or inadequate storage space that cannot easily meet current market expectations. Let's break down the two main types of …

Real-life examples of functional obsolescence include bridges with inadequate lane and shoulder widths and roads that cannot handle modern traffic demands. Investors in the functional obsolescence …

Functional obsolescence refers to a reduction in a property's value due to outdated design features that are no longer in demand or practical. This concept is pivotal in real estate appraisal and valuation, as …