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he cost approach method Burt used before investing in his new community was highly dependent on his depreciation estimates. As they begin building the homes they realize the guest bedroom in each has a point of entry that prospective buyers do not like in the layout of the house. The depreciation of this design defect is ______.

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The depreciation of this design defect is Functional obsolescence

What is Functional Obsolescence?

  • Functional obsolescence is described as "the weakening of functional capacity of a property according to market tastes and norms" in The Dictionary of Real Estate Appraisal, Fifth Edition.
  • In plainer terms, the description essentially says that the property's desirability has decreased, generally as a result of an old feature that is difficult to change or update.
  • Although functional obsolescence is typically connected with decaying buildings or rundown areas, it can also happen in the opposite situation.
  • For instance, a house may have "over-improvements" if the owner renovates and adds features that may not be required.

Learn more about Functional Obsolescence with the help of the given link:

https://brainly.com/question/14337174?referrer=searchResults

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