What is obsolescence in terms of property valuation?

Obsolescence in property valuation refers to the decrease in value of a property due to factors that make it less desirable to potential buyers or users, despite it still being functional. Items that are no longer used or wanted may have lost market value due to changes in consumer preferences, technological advancements, or shifts in economic conditions. This concept encompasses various types of obsolescence, including physical, functional, and economic obsolescence.

In the context of the choices provided, option C accurately captures the essence of obsolescence, as it highlights how items that remain functional may still see a decline in their value due to a lack of desirability. Understanding obsolescence is critical for adjusters and appraisers, as it influences how properties are valued and the strategies used for selling or repurposing them in the market.