An original house in an older part of town that has two bedrooms and one bathroom could be considered functionally obsolete if all the other original homes in the area are torn down over the years and replaced with five bedroom, three bathroom houses. Because the old house does not have the features that most modern buyers want, it is said to be functionally obsolete, even if it is still in good condition and is perfectly livable.
As another example, many home entertainment centers became functionally obsolete as flat-panel televisions replaced bulky analog televisions. The old entertainment centers were too deep to accommodate the new, thin televisions.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
functional obsolescence — see obsolescence Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
functional obsolescence — The need for replacement because a structure or equipment has become inefficient or out moded because of improvements developed since its original construction or production. The loss of value due to inherent deficiencies within the property.… … Black's law dictionary
Obsolescence — Obsolete redirects here. For the album by Fear Factory, see Obsolete (album). Obsolescence is 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. Obsolescence… … Wikipedia
obsolescence — Condition or process of falling into disuse. The diminution in value of property caused by changes in technology, public taste, and new inventions rendering the property less desirable on the market. A decline in market value of an asset caused… … Black's law dictionary
functional depreciation — Such results from necessary replacement of equipment before it is worn out, by reason of invention and improved machinery, equipment, etc. which render more efficient and satisfactory service. See functional obsolescence … Black's law dictionary
obsolescence — A condition resulting from unforeseen changes in the art, which make the installation of new apparatus necessary. 43 Am J1st Pub Util § 145. The condition of a thing which has passed out of general use, is outmoded, and out of fashion. Re Stout,… … Ballentine's law dictionary
Planned obsolescence — The Centennial Light in the Livermore, California Firehouse is often cited as evidence for the existence of planned obsolescence in later produced light bulbs. Planned obsolescence or built in obsolescence … Wikipedia
economic obsolescence — Loss of desirability and useful life of property due to economic developments (e.g. deterioration of neighborhood or zoning change) rather than deterioration (functional obsolescence). Term as used with respect to valuation of property for… … Black's law dictionary
Устаревание функциональное — (FUNCTIONAL OBSOLESCENCE) снижение мощности или эффективности объекта из за изменений во вкусах, привычках, предпочтениях, из за технических нововведений или изменений рыночных стандартов … Словарь инвестиционных и оценочных терминов
Comparables — (or comps) is a real estate appraisal term referring to properties with characteristics that are similar to a subject property whose value is being sought. This can be accomplished either by a real estate agent who attempts to establish the value … Wikipedia