Which factor does not contribute to functional obsolescence?

Functional obsolescence refers to a reduction in property value due to factors that make the property less useful or desirable to potential buyers, largely because it has characteristics that are no longer deemed functional or relevant according to current market expectations.

Wear and tear from age is a natural part of a property's lifecycle and is generally classified as physical depreciation rather than functional obsolescence. Physical depreciation relates to the decline in a property's value due solely to physical deterioration over time, such as peeling paint, a leaky roof, or worn-out features. This form of depreciation is typically associated with the condition of the property itself, rather than its overall suitability or functionality based on market trends and standards.

In contrast, outdated plumbing, a declining neighborhood reputation, and floor plan differences compared to modern standards directly impact how the property functions in relation to current buyer expectations and standards, thus contributing directly to functional obsolescence. These factors can make a property less appealing not due to physical condition, but because they do not meet the current desires or requirements of potential buyers.