Georgia Appraiser Certification Practice Exam 2025 – Your Comprehensive All-in-One Guide to Success!

Functional obsolescence refers to a reduction in an asset’s value due to changes in design, technology, preferences, or the inadequacy of a property's features to meet the needs of the current market. This type of obsolescence can often be remedied through renovations, upgrades, or modifications. For example, if a home lacks modern amenities, the addition of those features can effectively restore value, making functional obsolescence typically curable.

In contrast, economic obsolescence, which is often synonymous with external obsolescence, refers to the loss of value caused by outside factors that are beyond the control of the property owner, such as market trends, changes in zoning laws, or neighborhood decline. This type of obsolescence is generally considered incurable because the causes originate from external circumstances that cannot be easily addressed or rectified by the property owner.

Understanding these distinctions helps clarify why functional obsolescence is categorized differently in terms of curability than the other types, particularly external obsolescence, which tends to be acute and tied to broader economic factors. In summary, functional obsolescence stands out as a type that is usually alleviated through internal changes to the property, while external or economic obsolescence often remains beyond the control of