Which condition may indicate functional obsolescence in a property?

Functional obsolescence refers to a decrease in a property's value due to changes in market preferences, standards of living, or features that are no longer desirable. Ceilings that are lower than customary can be classified as an indicator of functional obsolescence because they may not meet the current expectations or norms for ceiling heights in residential or commercial properties.

If a property has lower ceilings, it may feel cramped or outdated compared to others on the market with more spacious designs, ultimately leading potential buyers to feel that the property does not meet their needs or expectations. This misalignment with current market preferences can result in a decline in marketability and value, which is a hallmark of functional obsolescence.

While roof leaks, high maintenance costs, and poor location can all negatively impact a property's value, they are often categorized as issues related to physical deterioration or external obsolescence rather than functional shortcomings tied to design or layout preferences. Hence, the lower-than-customary ceiling height is specifically indicative of a functional deficiency that could sway buyer interest and demand.