DC Property Management License Practice Test

Functional obsolescence refers to a loss of value that occurs when a property or its components fail to meet the needs or preferences of current users. This can include outdated features or designs, such as bathroom fixtures that no longer align with modern standards or consumer tastes. When a property has elements that are considered inefficient or unattractive due to changing functionality or design requirements, it suffers from functional obsolescence.

In contrast, physical obsolescence typically relates to the deterioration of a property due to wear and tear, while economic obsolescence is connected to external factors that adversely affect property value, such as changes in the neighborhood or market conditions. Structural obsolescence pertains to issues with the actual structure of the building that affect its integrity or usability. Thus, functional obsolescence is the most accurate term to describe the impact of outdated bathroom fixtures on property value.