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 For example, a commercial building having an outdated elevator or electrical wiring system is experiencing functional depreciation.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

Cover

To place insurance in force on an individual, individuals, or an organization. ...

Orientation

Locating a structure after considering such factors as the homeowner's desired privacy, noise, wi ...

Parent Company

Insurer in a group of companies that act as subsidiaries. ...

Pension Maximization

Plan under which life insurance is substituted for retirement income. Under the plan, a married indi ...

Conditional Offer

Offer to buy real estate provided certain conditions are met. ...

Associate In Management (aim)

Professional designation earned after the successful completion of four national examinations given ...

Related Real Estate FAQ

What Is Freddie Mac?

Freddie Mac is a name for the Federal Home Loan Mortgage Corp., which is a financial corporation cha ...

How Big Is An Acre?

An acre is an area of land equal to 43,560 square feet. For visuality purposes, an acre is most oft ...

What Does FSBO Mean?

FSBO means for sale by owner. ...

What Is A Term?

A term is the length of a loan. ...

When Should I Get Travel Insurance?

You should definitely consider getting travel insurance when doing or bringing any of the following ...

What Is A Broker?

An agent who is authorized to open and run his/her own agency. All real estate offices have one prin ...

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

Mortgage Loan Types What Must I Disclose When Selling My Home? How To Sell Your Home What Costs Do Buyers and Sellers Pay On Big Day When Escrow Closes? 7 Things to Consider Before Moving to a New City

FAQ

Do you have any tips to help me manage my investing? What is commission? What is a proration? What is title insurance? What is homeowners association (HOA)?