Obsolescence

Definition: Loss in a property's value or usefulness because its features are outdated or because outside conditions have changed. Appraisal distinguishes functional obsolescence from external obsolescence.

Example

An awkward floor plan reduces a home's appeal even though its materials remain in good physical condition.

Keep the distinction clear

Obsolescence differs from physical deterioration. A feature can function as built yet no longer match market needs; some deficiencies are economically curable and others are not.

Related terms

Depreciation · Curable Depreciation · Incurable Depreciation

Keep studying

CMA vs. Appraisal: What Is the Difference?

References: California DRE: real estate glossary

Pronunciation (US): ahb-suh-LES-uns (capitals show stress)

Pronunciation reference: Merriam-Webster