A building considered an improper improvement due to poor design would be categorized as?

Prepare for the California Real Estate Brokerage Appraisal Test. Use study aids like flashcards and multiple-choice questions with hints and explanations to boost your readiness for the exam!

A building that is deemed an improper improvement due to poor design falls under the category of incurable functional obsolescence. This classification is appropriate because functional obsolescence refers to a loss in value due to factors inherent in the property itself that negatively affect its functionality and usability. When a building is poorly designed, it may have features that are outdated or not aligned with current market expectations, which can lead to a reduction in its value.

Incurable functional obsolescence specifically indicates that the deficiencies in the property's design cannot be economically corrected. For example, if the layout of a building cannot accommodate current needs or preferences, renovation might not provide a return on investment that justifies the expense. Therefore, the presence of poorly designed elements leads to a decrease in value that cannot be remedied without substantial cost or total redesign, which would not be feasible within a reasonable investment framework.

Understanding the nuances between curable and incurable functional obsolescence is vital for appraisers, as it affects property value assessments. Curable functional obsolescence would suggest that the issues can be addressed with reasonable costs, which is not the case for a property featuring fundamental design flaws.

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