Functional obsolescence

Functional obsolescence occurs when a property's design, layout, or features become outdated or less useful because of changes in technology, preferences, or standards. This can make the property less desirable or harder to sell, even if it’s physically in good condition. For example, a home with outdated kitchen appliances or poor traffic flow might be less appealing compared to newer designs. Essentially, it's a reduction in a property's value caused by its failing to meet current functional needs or expectations, rather than physical deterioration.