Real Estate Course 3 Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

The term that describes depreciation caused by a property feature that negatively affects its usability or marketability, such as bedrooms located on a level without bathrooms, is functional obsolescence. This occurs when the design or layout of a property is inefficient or outdated, leading to a decrease in its value. In this case, having bedrooms without convenient access to bathrooms presents a significant inconvenience for residents, which can make the property less desirable to potential buyers or renters.

Functional obsolescence specifically addresses issues related to the overall usability of a property based on its design and layout, unlike physical obsolescence, which pertains to the wear and tear of physical structures, economic obsolescence, which relates to external economic factors affecting property value, and environmental depreciation, which is concerned with impacts from environmental changes. Understanding functional obsolescence helps in recognizing how certain design choices can significantly affect property value and market appeal.