Which term describes property that has lost its value due to its condition, usefulness, or layout?

Obsolescence refers specifically to the loss of value in property due to factors such as its condition, usefulness, or layout. This term encompasses both physical aspects of the property and external factors that may affect its desirability, such as changes in market demand, technological advancements, or shifts in societal preferences that render certain properties less functional or appealing.

In contrast, depreciation is a broader term that encompasses a decrease in value over time due to any reason, including wear and tear, market conditions, or obsolescence itself. Appreciation signifies an increase in property value, which is the opposite of the context outlined in the question. The term "depreciated value" isn't commonly used in real estate terminology as a standalone concept, making obsolescence the most precise term to describe the specific scenario of property losing value due to its condition or layout.