Functional obsolescence

functional obsolescence
loss of value from all causes within the property except those due to physical deterioration.
Example: A poor floor plan or outdated plumbing fixtures are types of functional obsolescence.

FUNCTIONAL OBSOLESCENCE - The loss of use or value of an asset due to a change in the market demands. A...
FUNCTIONAL-BASED ACCOUNTING - focuses on organizational units such as departments and plants, uses fina...

Functional Obsolescence: Functional obsolescence is depreciation from faulty design or lack of modern conveniences.

Depreciation - (1) In an appraisal, a loss of value in property due to any cause, including physical deterioration, functional obsolescence and external obsolescence; (2) In real estate investment, ...

Depreciation
A loss in the value of property. This may occur due to physical deterioration, functional obsolescence or economic obsolescence. Opposite of appreciation.

See also: Obsolescence, Appraiser, Personal finance, Expense, Grantor