principle of contribution

Functional Obsolescence Examples: How to Account for a Superadequacy

An overbuilt improvement or superadequacy (a type of functional obsolescence) is more probable in a luxury home than a standard home. As a luxury home becomes more unique, the costs will typically increase, which in turn shrinks the pool of available buyers and increases the likelihood of a superadequacy. Below, we break down some important information for luxury real estate …

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