Alabama Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

Question: 1 / 400

What characterizes functional obsolescence in property appraisal?

Lack of modern features

External environmental changes

Design defects such as no bathroom on the first floor

Functional obsolescence in property appraisal is described as a reduction in the value of a property due to its poor design. This means that the property may no longer meet the current demands and preferences of buyers because of its outdated layout or features. Options A, B, and D do not accurately depict functional obsolescence because they refer to other factors such as modern features, external changes, and physical damages, which may also contribute to a property's decrease in value, but are not the defining characteristics of functional obsolescence. Option C, however, specifically mentions a design defect that is a common indicator of functional obsolescence in property appraisal.

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Physical damages

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