What are the three types of Functional Curable Obsolescence?

The correct answer identifies the three types of Functional Curable Obsolescence as deficiency, modernization, and super adequacy.

Deficiency refers to features or conditions of a property that do not meet current market expectations, which can reduce its value. Examples may include outdated layouts or inadequate facilities. This type of obsolescence can often be remedied through renovations or improvements.

Modernization involves updating or improving property features to align with contemporary standards and buyer expectations. This can range from aesthetic upgrades to structural enhancements that make the property more functional and appealing.

Super adequacy, on the other hand, refers to the situation where a property has features that exceed market demands or are not congruent with the local property's acceptable standards. While these features may be valuable and enhance the property's appeal, their overabundance can lead to decreased financial returns relative to the cost of installation.

Understanding these categories is essential for appraisers as they assess a property's value, recognizing that certain attributes can be rectified to enhance overall market performance without affecting the property’s inherent desirability or location.