What is Incurable Functional Obsolescence?

Incurable functional obsolescence refers to a situation in which a property suffers a loss in value due to shortcomings or inefficiencies in its design or utility that cannot be feasibly corrected. This form of obsolescence arises from factors such as outdated layout, inadequate facilities, or insufficient space utilization, which typically represent intrinsic issues with the property that are not easily remedied.

When associated repair or modification costs exceed the expected increase in property value, the obsolescence becomes termed "incurable." This is significant because it highlights the distinction between problems that can be addressed economically and those that are beyond viable correction, making the property less appealing to current market conditions. Understanding this concept is crucial for appraisers, as it guides evaluations and informs potential buyers or investors about the financial implications of existing limitations in the property.