What type of obsolescence is caused by factors internal to the property?

Functional obsolescence refers to a reduction in a property’s value due to inefficiencies or inadequacies in its features or design. This type of obsolescence stems from factors related to the property itself, such as outdated layouts, poor material choices, or a lack of modern amenities that consumers expect. For example, a house with too few bathrooms for today’s standards or a commercial building lacking essential technological capabilities would experience functional obsolescence.

In contrast, environmental obsolescence involves external factors, such as neighboring developments or environmental issues that impact the property’s desirability. Economic obsolescence is also an external factor, often linked to broader economic conditions that decrease property values, while cultural obsolescence focuses on shifts in social norms and tastes outside the property itself. These distinctions underline why functional obsolescence is solely attributed to the internal characteristics and conditions of the property.