California Real Estate Practice Exam

A four-bedroom house with only one bathroom is an example of what?

1. Functional obsolescence

2. Economic obsolescence

3. External obsolescence

4. Physical deterioration

The correct answer is: Functional obsolescence

A four-bedroom house with only one bathroom could be considered an example of functional obsolescence because it lacks a key feature that many potential buyers or renters would consider essential or highly desirable. The home may still physically exist and be in good condition, but its usefulness and value are affected by its insufficient bathroom accommodations. This type of obsolescence is important to note when considering buying or renting a property as it can impact its marketability and potential for future appreciation. The other options refer to different types of obsolescence that do not directly relate to the specific scenario described. Economic obsolescence typically refers to factors outside the property that affect its value, such as declining job opportunities in the area. External obsolescence refers to factors on the property's surrounding area that can negatively impact its value, such as noise pollution or lack of nearby amenities. Physical deterioration refers to the natural wear and tear of a property over time. While some of these may also apply to a four-bedroom house with only one bathroom, functional obsolescence is the most accurate description for this specific scenario.