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Functional Obsolescence - Big Words For Having to Perform a Task or Make Use of Something in a Less Than Desirable Manner

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Real Estate Agent with Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 141871

Functional Obsolescence - Big Words For Having to Perform a Task or Make Use of Something in a Less Than Desirable Manner

 

You don't like the floor plan because:

 

Figure out how to make it work

  • The laundry area is in a closet in the master bedroom?  - Functional Obsolescence
  • The house is huge with a dozen bedrooms but only 1 bathroom - Functional Obsolescence
  • The kitchen is a long way from the garage for delivering groceries... have to go through the living room, den, dining room to get to it?  - Functional Obsolescence
  • There is only bathroom in the home and it does not have a tub?... only a stand up shower?  Functional Obsolescence

 

Get the idea?  

:) 

 

When do the terms functional obsolescence occur?  USUALLY ON AN APPRAISAL.  OUCH!  Yep!  A home with functional obsolescence will have less value and may even cause lending issues..  

 

You're a buyer...  Even though you love a location, love the home EXCEPT for the functional obsolescence, do not ignore it.  If you buy the home, is that a way that will allow you to remodel, redo, or some way overcome the problem?  Be thinking about how to get rid of Functional Obsolescence!  

 

You're a seller...  AND you have a home with these issues... how can you overcome?  Is it worth it to have the home fixed?   Often it's not a matter of recouping the expense BUT the difference between whether the home will sell in a given amount of time at a price that would be offered if the problem were not there.. SO do you lower the price or fix the problem?  Usually a quicker sale if you FIX THE FUNCTIONAL OBSOLESCENCE!

 

I'm Judi Barrett... I sell real estate in Southeast Oklahoma.  To be a little more detailed I sell real estate in McCurtain County and Choctaw County Oklahoma.  I love what I do.. I love working with people.  Need that kind of real estate agent in that area?  I'm the lady.  Judi Barrett 580.212.5946  Broker/Owner Integrity Real Estate Services

 

Show All Comments
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

PS can't reblog...

Aug 10, 2013 05:00 AM
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Judi, great points. I think this is very hard on sellers. How much time will you save selling against the cost of updates? This can be a difficult decision.

Aug 10, 2013 06:08 AM
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Judi...Our expectations have increased so much and that is why so many features that were once acceptable are no longer. Live with one bathroom? Absolutely not even if one is single living alone. 

Kate

Aug 10, 2013 09:34 AM
Brad MacKenzie
Brad MacKenzie - Duxbury, MA
Turning Houses into Homes on the South Shore

Time for a remodel.

Aug 10, 2013 09:41 AM
Jay & Michelle Lieberman
Keller Williams World Class - Agoura Hills, CA
Creating Calm in the Buying and Selling Chaos

Really hard to spot functional obsolescence.  While I see a lot of homes that need half the place remodeled, an appraiser may be using a different standard.  I at least make sure the client understands that the tiny room that looks like a closet which was ok in 1942 is now today just a closet!

Aug 10, 2013 10:23 AM
Rosie Crow
Serving Sugar Land, Richmond, Rosenberg, Missouri City - Sugar Land, TX
Exceeding Expectations. Delivering Results
Another functional obsolescence that comes to mind....a one car garage! In my parents neighborhood, there are no garages!!!
Aug 10, 2013 12:21 PM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

The crazy thing is that the seller's love it that way and think buyers will too! (I like a washer/dryer in a master closet! HA!) But then, my kids are grown and I live in a primarily retired community. :)

Aug 10, 2013 12:31 PM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Judi

Very informative gold star post.

Good luck and success.

Lou Ludwig

Aug 10, 2013 01:16 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Congrats on the feature. You are right: "A home with functional obsolescence will have less value and may even cause lending issues."

Aug 10, 2013 01:22 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

This is great advice, Judi.  A seller may avoid a home sitting on the market for too long because of a problem that could be fixed, and some of the money spent could be recouped if the home sells quicker and for more money.  And for the buyer who can overlook the problem, they may end up with a home they are going to love.

Aug 10, 2013 01:44 PM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

I tried to re-blog and after I hit the re-blog button and made my intro comments it gave me the "lost your keys" page. After that, the re-blog button disappeared and it would not let me reblog. Weird. I will try again tonight.

Aug 10, 2013 05:37 PM
Jack O'Neal
HomeSmart Elite Group - Gilbert, AZ

Love the term, Functional Obsolescence, most sellers do not realize that neat feature does not impress the buyer. 

Aug 11, 2013 12:05 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Standing on my toes to enjoy a peak at some sort of view doesn't cut it either...

Aug 11, 2013 12:55 AM
Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407
Yes, I agree. If a home has functional obsolescence, it is unfortunately for the seller, an issue that will remain and stick in buyers minds; it's best just to fix the problem or risk big challenges when trying to sell.
Aug 11, 2013 01:09 AM
Rene Fabre
ARFCO Media - Renton, WA
Practicing Philosophical Eclectic of the Arts

Hi Judi... That is one thing I can say about homes built in the last 15 years or so. I've seen my fair share of homes in our area that were built in the 50's and 60's especially that have some pretty strange layouts. Great post!

Aug 11, 2013 01:28 AM
Helen and Larry Prier- Re-Max Gateway - Residential Real Estate
RE-MAX Gateway- Residential Real Estate Sales - Anacortes, WA
Anacortes & surrounding Skagit & Island Counties

Judi you are so right outdated homes have ahard time selling

Aug 11, 2013 04:21 AM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Marnie - So glad that you are on top of it and pointing those things out to your buyers!  

 

Adrian - We do often get used to the issues in/with our own homes ... I know I do mine.  

 

Lenn - You are so right. I didn't think of that one since we have very very few basements here.  

 

Lloyd - I think what hurts is the time it sits on the market waiting for someone that is willing to do the re-model and usually the sales price is hurt. 

 

David - That probably does cause some creative advertising!  :) 

 

Kathy - Do you know some that need to be described as Functionally Obsolete? 

 

 

 

 

 

Aug 11, 2013 05:27 AM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Thanks for the re-blog Rebecca and Joni!  

Aug 11, 2013 06:31 AM
Morris Massre
Pembroke Pines, FL
Real Estate Instructor Broward County Florida

It's funny you mention that term because it was just on my license renewal test!  But it's true that it can hurt an appraisal.

Aug 12, 2013 04:22 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource
Judi, we've all come across a few homes that suffer from functional obsolescence...definitely something to address before the home goes on the market...could be an expensive fix, but then there's the alternative!
Aug 18, 2013 12:27 PM
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