Does Functional Obsolescence Affect The Value of My Home?
The reduction of value or usefulness of real estate due to poor design or defect is known as functional obsolescence. I first learned this phrase while studying for my real estate exam years ago and it stuck with me. It isn't a term you hear every day and I like how it sounds tripping off the tongue (func·tion·al ob·so·les·cence).
The example most frequently used to describe functional obsolescence is "going through one bedroom to get to another bedroom, without the benefit of a hallway".
As a Realtor, I don't see a lot of functional obsolescence in today's homes. But I believe this is a viable candidate.
These stairs lead from the main level to the fourth bedroom on the second floor. The stairs split at the landing. The bonus (4th) bedroom is up one flight of stairs, while the bathroom and closet is back down and up the other side.
This arrangement may be fine for a teenager or college student, but the floor plan is problematic for showering and getting dressed each day. An appraiser** would justifiably discount the value of the upstairs bedroom, bath, and closet because of the separation of the two spaces.
If you are home shopping in the Brandon MS market and find a home with a similar floor plan, you may wonder if this design flaw should affect your decision to purchase. If the home otherwise meets your family's needs, by all means buy it, but buy it at a discount! The design of this space is not practical. Realize when the time comes to SELL your property, the functional obsolescence could be a deterrent to the next buyer of the home, and would result in a lower sales price and possibly a longer time to sell.
** I'd like to hear from appraisers and home builders about this post. Does this fit the description of functional obsolescence, and how does it affect the value of the property?
Written and Published by Pat Starnes REALTOR
Pat specializes in Residential and New Home Sales
Primary Service Area:
Brandon, Pearl, Ridgeland, Flowood, Madison and the Ross Barnett Reservoir area
Pat Starnes, Broker Associate
Front Gate Real Estate, 6700 Old Canton Rd., Suite C
Ridgeland, MS 39157
601-991-2900 - Office
601-278-4513 - Cell
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