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What is meant by functional obsolescence? Could a new building suffer from functional obsolescence? Give an...

What is meant by functional obsolescence? Could a new building suffer from functional obsolescence? Give an example.

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Functional Obsolescence:

Functional obsolescence is the reduction of an object/ Asset's usefulness or desirability , because of an outdated design feature that cannot be easily changed.

Yes a new building suffer from functional Obsolescence.

Functional obsolescence refers to a building's loss in value resulting from changes in tastes, technical innovations, or market standards.

For example, in real estate, it refers to the loss of property value due to an obsolete feature, such as an old house with one bathroom in a neighborhood filled with new homes that have at least three bathrooms.

Most curable functional obsolescence are deficiencies. However, if adding the additional bathroom generates more value than it costs, then it would be considered a curable functional obsolescence.

jeff jeffy answered 2 years ago
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