What is an example of functional obsolescence?

Functional obsolescence refers to a reduction in the usefulness or desirability of a property due to changes in design preferences or technology. Outdated plumbing is a prime example of this concept because it can render a property less appealing or functional compared to newer homes that feature modern plumbing systems. When the plumbing does not meet current standards or expectations—such as inadequate water pressure, old piping materials, or inefficient fixtures—it can significantly impact the property's value and functionality.

The other options, while related to property condition, represent different issues. Excessive wear and tear generally relates to physical deterioration rather than an outdated feature. Unattractive landscaping affects curb appeal but not the functional aspects of the home itself. Temporary economic downturns refer to market fluctuations and external economic pressures rather than inherent property features, differentiating them from the idea of functional obsolescence.