Depreciation
Functional obsolescence
Value lost through a defect in the property’s own design or utility
Four bedrooms with one bathroom, a bedroom you must walk through to reach another, a dated layout, a ceiling too low for the use. The cause is inside the property, which is why some of it can be cured.
How the exam asks about it
Distinguished from external obsolescence by location of the cause: inside the property line is functional, outside it is external.
Related terms
Sitting the license exam? Find out what you actually know.
Free practice questions built to the published national content outline, with an explanation after every answer. No account, no paywall.
Independent exam preparation. Real Estate Exam Bank is not a state-approved pre-licensing course and completing anything here does not satisfy any state education requirement. Not affiliated with, endorsed by, or authorized by any state real estate commission, Pearson VUE, or PSI. Practice questions here are original study material, not the official exam.