Functional Depreciation


Definition of "Functional depreciation"

Leisa Ormsbee
  Realty Texas

A reduction in structural value from all reasons except physical failure. For example, a commercial building having an outdated elevator or electrical wiring system is experiencing functional depreciation.


Search Real Estate Glossary

 

Related Real Estate Glossary terms

Actuary, Enrolled

Individual who has met professional standards of the Internal Revenue Service and the Department of ...

Voidable Contract

Valid contract that can be canceled for cause by one or more parties to the contract. An insurance c ...

Respondeat Superior

term used in law stating 'allow the principal to respond'. An owner of property is legally liable f ...

Paper

Amount received by a seller of real property in the form of credit rather than cash. Interest is typ ...

Distribution Approach

The apportioning, disbursing, dividing, offering, or parceling out of property among individuals. (1 ...

Second Lien

Lien which is over and above a first lien. A second lien is subordinate to the first lien and can b ...

Related Real Estate FAQ

What Is A REALTOR®?

A REALTOR® is an agent or agency that belongs to the local or state board of REALTORS® and is affi ...

How Much Income Do I Need ?

Mortgage companies use ratios to analyze your mortgage payment. The housing payment ratio (or front ...

What Is A APR Loan?

This APR Calculator can be used to estimate the Annual Percentage Rate for a loan based on input par ...

What Is A Title?

A title is the right of property ownership. ...

What Is A FHA Mortgage?

A FHA mortgage is when the government guarantees Federal Housing Authority loans. You can put down a ...

What Is Loan Amortization?

This calculator will amortize your mortgage over the loan period based on your input. To see a break ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

What is Earnest Money 10 Tips for Homebuyers What do Real Estate Attorneys do? Foreclosure - The Pros and Cons of Buying 7 Things to Consider Before Moving to a New City

FAQ

What does computer insurance cover that my warranty doesn't? What type of a home is a condominium? What are paid advertorials? What is a deed? What is an interest rate?