Functional Obsolescence
Posted by Carl Eschenburg on Tuesday, March 15th, 2011 at 8:57am.ob·so·les·cence | noun | a loss in the utility or value of property that results over time from intrinsic limitations (as outmoded facilities) or external circumstances.
func·tion·al ob·so·les·cence
:: obsolescence deriving from lack of adequate or appropriate equipment, space, or design.
Real Estate Examples:
- Homes with 3 bedrooms and only one bath were popular in the 50s and 60s, but are now considered functionally obsolete because most buyers want a minimum of two bathrooms.
- Homes with detached, 1 or 1.5 car garages are functionally obsolete; homeowners don’t want to walk that far (especially in the snow and rain) and most have a second vehicle or “Stuff” for which they need storage.
- Think about how things have changed in the past 15 years with home technology alone. It was a big deal to have a house pre-wired with multiple analogue phone lines just a few short years ago. Today, few people even have land lines in their homes?
- Houses with CAT-5 (Computer network) wiring in every room were very attractive for a short period of time, but now that wi-fi is available and so reliable network wiring is an obsolete solution for most residential situations.
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