Valuation
Functional Obsolescence
A concise definition for the California Real Estate Exam study guide.
Definition
Loss in value from features within the property that are inadequate, outdated, or superfluous by current market standards. Example: outdated floor plan, inadequate electrical, too many bathrooms.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 6: Valuation & Appraisal →