Brokered by Howard Hanna Real Estate Executives. In the long term, functional obsolescence results in losses to investors due to the fact that real estate investments are financially intense
Real Estate Term Obsolescence definition and explanation.
August 5, 2021 / in For Sellers /. Do be mindful that for real estate it does not mean that houses are no longer useful and cannot serve as a residence anymore. Change in the real estate market is inescapable. open listing A listing given to any number of brokers who can work simultaneously to sell the owner's property. Functional obsolescence is due to conditions within the property as opposed to economic obsolesce, which is due to reasons outside the property. Economic obsolescence. In the context of real estate, functional obsolescence is used to describe a property that is in the process of becoming obsolete. Figures represent combined percentage of "concerned" and "very concerned" respondents. Obsolescence Real Estate Mortgage Insurance Definition of "Obsolescence" Janet Padalino, Real Estate Agent eXp Realty, LLC- Padalino Guram Team A major factor in depreciation resulting from wear and tear from use and natural deterioration through interaction of weather elements may cause depreciation to a structure. An appraiser is responsible for a. finding value b. computing value c. determining value d. estimating value. The common real estate practice of showing listed homes to the public during established hours. Definition of "Obsolescence".
Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Over time things wear down and become obsolete. External obsolescence has to be external to your property. Continue >> Q3.
Thousands of students use our handy guide and sample tests to prepare for and pass the Real Estate Salesperson & Broker exams. This can be due to changes in technology, demographic shifts, or new zoning regulations. Institutional investors are grappling with the question of what to do with existing assets amid greater ESG scrutiny during the pandemic. Common causes of economic obsolescence include a change in aircraft flight patterns, increased crime rates, construction of a busy highway, construction of a landfill nearby, etc. U.S. Citizen or an alien lawfully admitted for permanent residence. If you do not pass your test, simply contact us with your failure notice and we will refund you in full. For real estate and subject property appraisal, it would depend primarily on the desirability of where a Real estate can be functionally obsolete if its design features are outdated, not useful, or not aligned with market tastes and standards. Correct! In real estate, functional obsolescence refers to the diminishing of the usefulness of an architecture design such that changing it to suit current real estate designs is almost impossible. About the author: The above Real Estate information on Functional obsolescence in Real Estate was provided by Bill Gassett, a Nationally recognized leader in his field. b. physical deterioration. Also call external obsolescence.
2 bath. Functional obsolescence is due to conditions within the property as opposed to economic obsolesce, which is due to reasons outside the property. Some examples of functional obsolescence are : - Poor design. - Too many or too few materials. - Excess construction.
With the institutional market close to 4.0 billion square feet, we estimate the rate at which properties fall out of the institutional pool to be 80-150 million square feet per year.
Obsolescence. In real estate, functional obsolescence usually leads to lower appraisal values. As you may have guessed, curable obsolescence is the type of functional obsolescence that can be cured. In other words, a property owner has pathways to remedy any dysfunction occurring at the property. Earlier, we explained how a property in disrepair is considered functionally obsolete. It commonly shows up on the real estate license exam.
All of our 1,000 New Jersey real estate practice exam questions are similar to the ones you will find on the actual New Jersey real estate exam, and are written by a Licensed Real Estate Instructor. The sinkhole or the peeling paint are both examples of physical deterioration. Risk Free Pass Guarantee. The value of real property is often closely related to its dimensions. Take this free practice test to get an idea of what is on the California Real Estate Salesperson exam administered by the California Department of Real Estate (CalDRE). As such, economic obsolescence is usually considered irreparable, as the owner has little to no influence over these external factors. Physical deterioration . In real estate, functional obsolescence exists when a Summarizing Functional Obsolescence in Real Estate.
Some common examples of Functional Obsolescence are: Poor or outdated design. Functional obsolescence results from market forces, especially the laws of supply and demand. The functional obsolescence of having one bath to share among five people is an inconvenience that impacts the family way of living. Source: PwC and ULI's Emerging Trends in Real Estate Europe 2022. This often occurs when an older house is located within a neighborhood of new homes. Economic obsolescence refers to the loss of value of a real estate property due to factors that are external to the property. Essentially, functional obsolescence refers to the loss of property value due to one or many obsolete features. Memorize flashcards and build a practice test to quiz yourself before your exam. In short, it is the loss of value of a property that is not caused by any fault of the property itself. External deterioration .
John's 100-year-old house doesn't have a When considering a real estate purchase, it's important to be mindful of how functional obsolescence may impact the market value of a propert. There are basically two types of obsolescence. In commercial real estate we refer to physical obsolescence as the decline in a propertys valuation due to physical depreciation or gross mismanagement. What is economic obsolescence in real estate? Too many or too few materials or features. Last updated: Feb 25, 2022 4 min read. One of the earliest citations of the term is found in the Minutes of the Maine Legislature as early as 1831 in speaking about the assessment and valuation of real estate:
Its all part of the natural real estate market life cycle. Functional Obsolescence is the impairment of a real propertys functional capacity due to changes in market tastes and/or standards. Summary & Conclusion. According to the Merriam-Webster Dictionary, the definition of functional obsolescence is as follows: obsolescence deriving from a lack of adequate or appropriate equipment, space, or design.. For 150 questions to simulate the actual exam, use our California Real Estate Practice Exam. Peeling paint on the outside of the house is not external obsolescence. c. functional obsolescence d. economic deterioration.
Obsolescence is defined as the state of being which occurs when an object, service, or practice is no longer wanted even though it may still be in good working order. Real Estate. As it relates to a commercial real estate investment, there are three types of obsolescence: functional, economic, and physical. Functional Obsolescence in Real Estate Explained.
What Is Economic Obsolescence In Real Estate? Lack of utility (meaning features are not practical or desirable) Overly costly operating expenses. Economic Obsolescence, in the context of real estate, is the depreciation in the value of a property due to external factors that are outside the control of the owner. If you do not pass your test, simply contact us with your failure notice and we will refund you in full. It can be cured as long as the cost is less than the added value. Some examples of functional obsolescence are: - Poor design. Even the most luxurious properties built within the last year one day will exhibit features deemed obsolescent and out of style by future generations. Watch on Previous Next More Real Estate Definitons - Too many or too few materials. It can be due to external factors like a neighborhood experiencing a rise in crime, or due to economic factors such as problems in the job market. How Does Functional Obsolescence Work? In the long term, functional obsolescence results in losses to investors due to the fact that real estate investments are financially intense. 893 sqft lot. Sustainability requirements and asset obsolescence are growing concerns for the industry over the next five years. 2 bed. Pass Your Real Estate Test - Guaranteed! The U.S. obsolescence rate is in the range of 100 million square feet and functions as a reduction of stock, in our view. New York Real Estate Salesperson License Requirements. PSI Real Estate Exam Questions - 2021 (70 Questions & Answers) PSI Real Estate Exam Questions - 2021 (70 Questions & Answers) Toggle Navigation. On the street, we call that wear and tear. Examples of Economic Obsolescence.
Physical obsolescence in the real estate market is when a property becomes outdated or no longer meets the needs of the current market.
Determining functional obsolescence requires an analysis of the property's layout and technologies in use. In the long term, functional obsolescence results in losses to investors due to the fact that real estate investments are financially intense.. Functional obsolescence is the reduction of an item's desirability or functionality due to an outdated and/or poor design, new technology, or changes in the standards of the market. Economic obsolescence results in a decline in the value of a property, where the causal factors are not within the Start studying the California: Real Estate Principles final exam flashcards containing study terms like C. Net Listing, C. The Cal-Vet loan program requires that the veteran have served a minimum of 90 days' active duty; provide Statement of Service if on active duty (or an honorable discharge if he is Bill has helped people move in and out of many Metrowest towns for the last 24+ Years. Economic obsolescence refers to the loss of value of a real estate property that is caused by factors that are external to the property. In real estate, we use the term functional obsolescence to describe when either a fixture or an entire structure becomes so dated that it is no longer as useful or desirable as it once was.
Wrong! Matching game, word search puzzle, and hangman also available. PERE interviewed 20 managers, investors and advisers about how elevated obsolescence risk is affecting investment decision making in private real estate. In other words, a property could become functionally obsolete when its design, style, amenities, or technology no longer meet the needs and/or expectations of modern tenants. Study free Real Estate flashcards about TN Exam Prep created by loudbox75 to improve your grades.
Such a form of obsolescence is usually incurable and the owners cannot fix the specific cause of depreciation. Property value loses when it becomes physically obsolete and may need to be demolished or redesigned. Summary. Functional obsolescence isnt necessarily a bad thing. Home; Exams; About Us; Blog; Functional obsolescence . Obsolescence can be categorized as curable or incurable, meaning it can be
Economic Obsolescence refers to a decline in property due to external factors; meaning that the owner has little or no ability to change the factors that are negatively affecting the property. Examples of economic (sometimes called external) obsolescence can be Obsolescence Real Estate Definition Obsolescence An appraisal term meaning that the age of a structure may cause it to become undesirable in use or appearance (old fashioned) and consequently lose income and value. Email agent. He has taught the 40-hour pre-licensure class and continuing education classes and has conducted new realtor training since 2014. Functional Obsolescence is a form of depreciation. With newer versions of tech devices eventually leaving older models functionally obsolete. In real estate, functional obsolescence refers to the diminishing of the usefulness of an architecture design such that changing it to suit current real estate designs is almost impossible. What Is Functional Obsolescence In Real Estate? In the long term, functional obsolescence results in losses to investors due to the fact that real estate investments are financially intense. Written by the MasterClass staff. Existing assets are becoming a growing concern for private real estates largest investors.
Functional Obsolescence This occurs when the interior of a property suffers from reduced usefulness. Economic Obsolescence. Functional obsolescence is a term that has been applied to many different sectors, often used to refer to technology that is out of date. In real estate, the term functional obsolescence is defined as the impairment of functional capacity of a property according to market tastes and standards. In simpler terms, this essentially means that there is a reduction in the propertys desirability, typically because of an outdated design feature that cannot easily be altered or changed.
The actual exam has 150 questions and 3 hours 15 minutes is given to complete it. In real estate, functional obsolescence refers to the diminishing of the usefulness of an architecture design such that changing it to suit current real estate designs is almost impossible. Greg is a state certified real estate instructor and licensed realtor with Greenridge Real Estate in Grand Rapids, Michigan. Minimum age of 18 years old to get a salespersons license; 20 years old to obtain brokers license. But in real estate, it is when a home doesnt meet market expectations on a Decrease in value of property as the result of technological advancement and/or changing social mores.
For Sale. 613 S Grand Ave, Lansing, MI 48933. In real estate, the term functional obsolescence is defined as the impairment of functional capacity of a property according to market tastes and standards.. b. an average of real estate values for properties similar to the subject property Obsolescence may be functional or economic. Measurement of real property is an important component of real estate math. Owners have varying levels of control over the degree to which their properties are affected by the concept of obsolescence, but all real estate is subject to it. This exercise attempts to quantify any adjustment in value that amplifies or outpaces downward trends occurring in the market, or accelerates depreciation beyond a straight-line basis.
Real estate can exhibit functional obsolescence if its design features are outdated, not useful, or In the context of real estate, functional obsolescence is used to describe a property that is in the process of becoming obsolete. $310,000 $10k. Real estate faces acceleration of obsolescence. Economic Obsolescence in Real Estate and Your Home Determining economic obsolescence in assets, such as land and machines, would differ slightly from real estate. Thousands of students use our handy guide and sample tests to prepare for and pass the Real Estate Salesperson & Broker exams. This is a form of accrued devaluation examined in the cost approach to market pricing. Obsolescence is the term used to refer to something that is either out of date, or no longer in line with market requirements. - Excess construction.
In real estate, functional obsolescence refers to the diminishing of the usefulness of an architecture design such that changing it to suit current real estate designs is almost impossible. The sinkhole in the backyard is external to your house, but it is still part of your property. Eloa P. (Kay) Gray, Real Estate Agent Residential Plus Real Estate Services. Highest and Best Use, or highest or best use (HBU), is a concept that originated with early economists such as Irving Fisher (1867-1947), who conceptualized the idea of maximum productivity.
Functional obsolescence in real estate is when a particular property has a feature or condition that makes it less desirable to buyers, decreasing the market value.
Obsolescence Functional obsolescence or lack of desirability in terms of layout, style and design as compared with that of a new property serving the same function: economic obsolescence or a loss in value from causes in the neighborhood, but outside the property itself. This could be due to some type of functional impairment or outdated design that could be difficult to fix or update. Upon completion of this chapter, you will be able to: Use linear measurements to calculate perimeter Calculate the area of In real estate, functional obsolescence usually leads to a loss of consumer appeal resulting in lower appraisal values.
Real Estate Term Obsolescence definition and explanation.
August 5, 2021 / in For Sellers /. Do be mindful that for real estate it does not mean that houses are no longer useful and cannot serve as a residence anymore. Change in the real estate market is inescapable. open listing A listing given to any number of brokers who can work simultaneously to sell the owner's property. Functional obsolescence is due to conditions within the property as opposed to economic obsolesce, which is due to reasons outside the property. Economic obsolescence. In the context of real estate, functional obsolescence is used to describe a property that is in the process of becoming obsolete. Figures represent combined percentage of "concerned" and "very concerned" respondents. Obsolescence Real Estate Mortgage Insurance Definition of "Obsolescence" Janet Padalino, Real Estate Agent eXp Realty, LLC- Padalino Guram Team A major factor in depreciation resulting from wear and tear from use and natural deterioration through interaction of weather elements may cause depreciation to a structure. An appraiser is responsible for a. finding value b. computing value c. determining value d. estimating value. The common real estate practice of showing listed homes to the public during established hours. Definition of "Obsolescence".
Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Over time things wear down and become obsolete. External obsolescence has to be external to your property. Continue >> Q3.
Thousands of students use our handy guide and sample tests to prepare for and pass the Real Estate Salesperson & Broker exams. This can be due to changes in technology, demographic shifts, or new zoning regulations. Institutional investors are grappling with the question of what to do with existing assets amid greater ESG scrutiny during the pandemic. Common causes of economic obsolescence include a change in aircraft flight patterns, increased crime rates, construction of a busy highway, construction of a landfill nearby, etc. U.S. Citizen or an alien lawfully admitted for permanent residence. If you do not pass your test, simply contact us with your failure notice and we will refund you in full. For real estate and subject property appraisal, it would depend primarily on the desirability of where a Real estate can be functionally obsolete if its design features are outdated, not useful, or not aligned with market tastes and standards. Correct! In real estate, functional obsolescence refers to the diminishing of the usefulness of an architecture design such that changing it to suit current real estate designs is almost impossible. About the author: The above Real Estate information on Functional obsolescence in Real Estate was provided by Bill Gassett, a Nationally recognized leader in his field. b. physical deterioration. Also call external obsolescence.
2 bath. Functional obsolescence is due to conditions within the property as opposed to economic obsolesce, which is due to reasons outside the property. Some examples of functional obsolescence are : - Poor design. - Too many or too few materials. - Excess construction.
With the institutional market close to 4.0 billion square feet, we estimate the rate at which properties fall out of the institutional pool to be 80-150 million square feet per year.
Obsolescence. In real estate, functional obsolescence usually leads to lower appraisal values. As you may have guessed, curable obsolescence is the type of functional obsolescence that can be cured. In other words, a property owner has pathways to remedy any dysfunction occurring at the property. Earlier, we explained how a property in disrepair is considered functionally obsolete. It commonly shows up on the real estate license exam.
All of our 1,000 New Jersey real estate practice exam questions are similar to the ones you will find on the actual New Jersey real estate exam, and are written by a Licensed Real Estate Instructor. The sinkhole or the peeling paint are both examples of physical deterioration. Risk Free Pass Guarantee. The value of real property is often closely related to its dimensions. Take this free practice test to get an idea of what is on the California Real Estate Salesperson exam administered by the California Department of Real Estate (CalDRE). As such, economic obsolescence is usually considered irreparable, as the owner has little to no influence over these external factors. Physical deterioration . In real estate, functional obsolescence exists when a Summarizing Functional Obsolescence in Real Estate.
Some common examples of Functional Obsolescence are: Poor or outdated design. Functional obsolescence results from market forces, especially the laws of supply and demand. The functional obsolescence of having one bath to share among five people is an inconvenience that impacts the family way of living. Source: PwC and ULI's Emerging Trends in Real Estate Europe 2022. This often occurs when an older house is located within a neighborhood of new homes. Economic obsolescence refers to the loss of value of a real estate property due to factors that are external to the property. Essentially, functional obsolescence refers to the loss of property value due to one or many obsolete features. Memorize flashcards and build a practice test to quiz yourself before your exam. In short, it is the loss of value of a property that is not caused by any fault of the property itself. External deterioration .
John's 100-year-old house doesn't have a When considering a real estate purchase, it's important to be mindful of how functional obsolescence may impact the market value of a propert. There are basically two types of obsolescence. In commercial real estate we refer to physical obsolescence as the decline in a propertys valuation due to physical depreciation or gross mismanagement. What is economic obsolescence in real estate? Too many or too few materials or features. Last updated: Feb 25, 2022 4 min read. One of the earliest citations of the term is found in the Minutes of the Maine Legislature as early as 1831 in speaking about the assessment and valuation of real estate:
Its all part of the natural real estate market life cycle. Functional Obsolescence is the impairment of a real propertys functional capacity due to changes in market tastes and/or standards. Summary & Conclusion. According to the Merriam-Webster Dictionary, the definition of functional obsolescence is as follows: obsolescence deriving from a lack of adequate or appropriate equipment, space, or design.. For 150 questions to simulate the actual exam, use our California Real Estate Practice Exam. Peeling paint on the outside of the house is not external obsolescence. c. functional obsolescence d. economic deterioration.
Obsolescence is defined as the state of being which occurs when an object, service, or practice is no longer wanted even though it may still be in good working order. Real Estate. As it relates to a commercial real estate investment, there are three types of obsolescence: functional, economic, and physical. Functional Obsolescence in Real Estate Explained.
What Is Economic Obsolescence In Real Estate? Lack of utility (meaning features are not practical or desirable) Overly costly operating expenses. Economic Obsolescence, in the context of real estate, is the depreciation in the value of a property due to external factors that are outside the control of the owner. If you do not pass your test, simply contact us with your failure notice and we will refund you in full. It can be cured as long as the cost is less than the added value. Some examples of functional obsolescence are: - Poor design. Even the most luxurious properties built within the last year one day will exhibit features deemed obsolescent and out of style by future generations. Watch on Previous Next More Real Estate Definitons - Too many or too few materials. It can be due to external factors like a neighborhood experiencing a rise in crime, or due to economic factors such as problems in the job market. How Does Functional Obsolescence Work? In the long term, functional obsolescence results in losses to investors due to the fact that real estate investments are financially intense. 893 sqft lot. Sustainability requirements and asset obsolescence are growing concerns for the industry over the next five years. 2 bed. Pass Your Real Estate Test - Guaranteed! The U.S. obsolescence rate is in the range of 100 million square feet and functions as a reduction of stock, in our view. New York Real Estate Salesperson License Requirements. PSI Real Estate Exam Questions - 2021 (70 Questions & Answers) PSI Real Estate Exam Questions - 2021 (70 Questions & Answers) Toggle Navigation. On the street, we call that wear and tear. Examples of Economic Obsolescence.
Physical obsolescence in the real estate market is when a property becomes outdated or no longer meets the needs of the current market.
Determining functional obsolescence requires an analysis of the property's layout and technologies in use. In the long term, functional obsolescence results in losses to investors due to the fact that real estate investments are financially intense.. Functional obsolescence is the reduction of an item's desirability or functionality due to an outdated and/or poor design, new technology, or changes in the standards of the market. Economic obsolescence results in a decline in the value of a property, where the causal factors are not within the Start studying the California: Real Estate Principles final exam flashcards containing study terms like C. Net Listing, C. The Cal-Vet loan program requires that the veteran have served a minimum of 90 days' active duty; provide Statement of Service if on active duty (or an honorable discharge if he is Bill has helped people move in and out of many Metrowest towns for the last 24+ Years. Economic obsolescence refers to the loss of value of a real estate property that is caused by factors that are external to the property. In real estate, we use the term functional obsolescence to describe when either a fixture or an entire structure becomes so dated that it is no longer as useful or desirable as it once was.
Wrong! Matching game, word search puzzle, and hangman also available. PERE interviewed 20 managers, investors and advisers about how elevated obsolescence risk is affecting investment decision making in private real estate. In other words, a property could become functionally obsolete when its design, style, amenities, or technology no longer meet the needs and/or expectations of modern tenants. Study free Real Estate flashcards about TN Exam Prep created by loudbox75 to improve your grades.
Such a form of obsolescence is usually incurable and the owners cannot fix the specific cause of depreciation. Property value loses when it becomes physically obsolete and may need to be demolished or redesigned. Summary. Functional obsolescence isnt necessarily a bad thing. Home; Exams; About Us; Blog; Functional obsolescence . Obsolescence can be categorized as curable or incurable, meaning it can be
Economic Obsolescence refers to a decline in property due to external factors; meaning that the owner has little or no ability to change the factors that are negatively affecting the property. Examples of economic (sometimes called external) obsolescence can be Obsolescence Real Estate Definition Obsolescence An appraisal term meaning that the age of a structure may cause it to become undesirable in use or appearance (old fashioned) and consequently lose income and value. Email agent. He has taught the 40-hour pre-licensure class and continuing education classes and has conducted new realtor training since 2014. Functional Obsolescence is a form of depreciation. With newer versions of tech devices eventually leaving older models functionally obsolete. In real estate, functional obsolescence refers to the diminishing of the usefulness of an architecture design such that changing it to suit current real estate designs is almost impossible. What Is Functional Obsolescence In Real Estate? In the long term, functional obsolescence results in losses to investors due to the fact that real estate investments are financially intense. Written by the MasterClass staff. Existing assets are becoming a growing concern for private real estates largest investors.
Functional Obsolescence This occurs when the interior of a property suffers from reduced usefulness. Economic Obsolescence. Functional obsolescence is a term that has been applied to many different sectors, often used to refer to technology that is out of date. In real estate, the term functional obsolescence is defined as the impairment of functional capacity of a property according to market tastes and standards. In simpler terms, this essentially means that there is a reduction in the propertys desirability, typically because of an outdated design feature that cannot easily be altered or changed.
The actual exam has 150 questions and 3 hours 15 minutes is given to complete it. In real estate, functional obsolescence refers to the diminishing of the usefulness of an architecture design such that changing it to suit current real estate designs is almost impossible. Greg is a state certified real estate instructor and licensed realtor with Greenridge Real Estate in Grand Rapids, Michigan. Minimum age of 18 years old to get a salespersons license; 20 years old to obtain brokers license. But in real estate, it is when a home doesnt meet market expectations on a Decrease in value of property as the result of technological advancement and/or changing social mores.
For Sale. 613 S Grand Ave, Lansing, MI 48933. In real estate, the term functional obsolescence is defined as the impairment of functional capacity of a property according to market tastes and standards.. b. an average of real estate values for properties similar to the subject property Obsolescence may be functional or economic. Measurement of real property is an important component of real estate math. Owners have varying levels of control over the degree to which their properties are affected by the concept of obsolescence, but all real estate is subject to it. This exercise attempts to quantify any adjustment in value that amplifies or outpaces downward trends occurring in the market, or accelerates depreciation beyond a straight-line basis.
Real estate can exhibit functional obsolescence if its design features are outdated, not useful, or In the context of real estate, functional obsolescence is used to describe a property that is in the process of becoming obsolete. $310,000 $10k. Real estate faces acceleration of obsolescence. Economic Obsolescence in Real Estate and Your Home Determining economic obsolescence in assets, such as land and machines, would differ slightly from real estate. Thousands of students use our handy guide and sample tests to prepare for and pass the Real Estate Salesperson & Broker exams. This is a form of accrued devaluation examined in the cost approach to market pricing. Obsolescence is the term used to refer to something that is either out of date, or no longer in line with market requirements. - Excess construction.
In real estate, functional obsolescence refers to the diminishing of the usefulness of an architecture design such that changing it to suit current real estate designs is almost impossible. The sinkhole in the backyard is external to your house, but it is still part of your property. Eloa P. (Kay) Gray, Real Estate Agent Residential Plus Real Estate Services. Highest and Best Use, or highest or best use (HBU), is a concept that originated with early economists such as Irving Fisher (1867-1947), who conceptualized the idea of maximum productivity.
Functional obsolescence in real estate is when a particular property has a feature or condition that makes it less desirable to buyers, decreasing the market value.
Obsolescence Functional obsolescence or lack of desirability in terms of layout, style and design as compared with that of a new property serving the same function: economic obsolescence or a loss in value from causes in the neighborhood, but outside the property itself. This could be due to some type of functional impairment or outdated design that could be difficult to fix or update. Upon completion of this chapter, you will be able to: Use linear measurements to calculate perimeter Calculate the area of In real estate, functional obsolescence usually leads to a loss of consumer appeal resulting in lower appraisal values.