When an appraiser adjusts for a poor floor plan while appraising a home, this is due to what factor?

When an appraiser makes adjustments for a poor floor plan during the appraisal process, it relates to functional obsolescence. This term refers specifically to the loss of value in a property because its design or layout does not meet current market preferences or standards. A poor floor plan can make a home less desirable, as it may hinder the efficient use of space, affect flow, or limit functionality.

In the context of property appraisal, functional obsolescence can manifest in various ways, such as having too few bathrooms for the size of the home, an impractical layout that makes it hard to access different areas, or outdated features that do not appeal to contemporary buyers. By recognizing and adjusting for these factors, an appraiser accurately reflects the property's current market value.

The other factors listed, while important in their own right, do not relate to the issue of a floor plan specifically. Physical deterioration pertains to the wear and tear on the property itself, external obsolescence refers to the loss in value due to external factors like neighborhood decline or environmental issues, and economic conditions deal with broader market trends and economic factors affecting real estate. These concepts are distinct from the internal layout issues that functional obsolescence addresses.