Homes in a new home development have been built with a floor plan that doesn't appeal to today's buyers. In a cost approach valu ation of the houses, what sort of depreciation will the appraiser apply
1 answer:
The kind of depreciation that the appraiser will apply in this case is called "functional obsolescence".
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What is "functional obsolescence"?</h3><h3 />
The kind of loss of value that is attributable to loss of appeal is what tis called Functional obsolescence depreciation method.
It can be curable or incurable. curable means that by giving the property a face life, it re-acquires value.
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